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No. 28,810 . - Monday June 28 1982 ***3o p

" ' ■ BX,WC PRICE ^ - AUSTB 1A Sch-IS: BaatUM Pr3S; PEMMAJHC Krg.50; FRANCE FrS.OO; GERMANY DM 2 , 0 ; ITALY Li, 000: NETHERLANDS B 2.3S; NORWAY Kr 5.00; PORTUGAL EM SO; SPAIN PfmtS: SWEDEN Kr 6.00; SWITZERLAND Frith EIRE SOp; MALTA 30s

***30p

Timber, Building Materials, Heating and .
Plumbing Equipment forthe Construction
and Allred Trades. Northaroptoo 62434.

NUR conference to

6ERERAL

BUSINESS

Summit
to call
for new
U.S. links

Lucas
offers
5% pay

BR may
still run
limited

BR and Tube strikes services

CBI gloomy on
state of British
manufacturing

BY PHIUP BASSETT, JOHN LLOYD AND ELINOR GOODMAN

rise

LEADERS of the National
Union, of Railwaymen will today

There appeared last night to firm proposals from Aeas today.

be two main avenues of possible

ask the union’s annual meeting compromise over the strike.

The second proposal involves
establishment by the NUR con-

EEC heads of government \e i

whether it wants to continue The- first follows the . inter- ference of a negotiating com-

LUCAS INDUSTRIES has'

-.it e„- , ' , — uiuuaiAuu nas

“I” f ,S‘ C * transatlantic opened the motor indostrv pay
USKt oL! hc, , r \ un . ,aut which round Wilh an offer of aboSt

the British Rail and London vention of the Advisory, Con- mittee, which would enter into

cltidtion — •* * -v.-.— •: — , _ .. .. - — _.

opens in Brussels today.

They are likely »o underline
their growing fears for the
future of political and commer-
cial relations with the U!s. and
call for a ‘‘ forum ” possihlv

5 per cent for manual workers.
Back Page

can tor a “ rorum ” possiblv steady in the top half of
based on top-level political con-' L*2f European Monetary System.

tacts between the EEC and U.S.
Back Page

In Washington, it was stressed
the nomination of George Shultz
to replace Alexander Haig as
Secretary of Slate would have

The Italian lira was also firm,
supported . by high Eurolira

Underground strikes.

The Cabinet's special contin-
gency committee begins meet-
ing; basis from today.

Mr David Howell, the Trans-
port Secretary said yesterday
that “ war had been declared M
by the unions.

Sir Peter Parker, BR chair-
man^ believes the strike could
last up to ihrco months. Down-

Arbitration immediate talks with the board.

Service just before the weekend. Of the two proposals, this seems

It would involve establish- rhe more likely, though it would
ment of an independent inquiry probably mean the strike still

Where to park
in London

interest rates, finishing as the I jnff Street has made M clear it

strongest currency in the EMS.
the recent devaluations of the
lira and franc appear to have

no change on the overall riircc- **keu pressure off the astern.

tion . oF U.S. foreign
Back Page, Page 2

policy. Mosl Merest remains centred

is ready to back BR’s stand
as long as necessary.

The Cabinet’s special contin-
gency committee, headed by Mr
William Whitelaw. begins mcct-

or. the strength of the dollar, J daily from today.

Kennedy ahead

Senator Edward Kennedy
received a tumultuous nv>>
tion at the Democratic Party
convention in Philadelphia,
leaving no doubt he is the
party's leading contender for
the presidency io 19S4. Page 2

which rose to record peaks
against the French franc and
lira, and was at a 10-month high
in terms of the D-Mark.

EMS June 25,1982
Grid • m-

Some London busmen yester-
day began strike action in
advance of a strike call from
July 5 — though print union offi-
cials rejected a union instruc-
tion to block d istribu l ion of
national newspapers by road.

EMERGENCY car parks in
the London are? will open
today at Hyde Park. Regent's
Park, St James’s Park, Batter-
sea Park and Victoria Park.
Normal parking restrictions
will he suspended (n side
streets bnt maintained on bos
routes.

Two special car parks for
Wimbledon tennis spectators
will be available in Wlmble-
doon stadium and at the local
football ground, with a bus
service to the tennis dub.

BR services began to be pro- J5™ „ f «w, r*

•occiuniv run /tmim fmm 9 nm . Idling ol side street park-

Gulf war flares

Fighting between Iraq and Iran
flared, with the Iranian oil
refiqery town cf Abadan coming
under Are, according to Tehran
radio.

gressivcly run down from 2 pm
yesterday afternoon, and are ex-
pected to be virtually a l a stand-
still today.

BR officials publicly stiH hop*

ing restrictions will not apply
in Wimbledon.

being in force for the two-week
period of the conference. -

The executive stands down
while a conference is assembled,
but Its 'final act last week was to
issue the conference with a set
of recommendations on how far
it should go.

These included no acceptance
of productivity strings and
pressing for the settlement date
to be brought forward to April.
The 26-strong executive last
Thursday ruled out a deferment
of the strike until July 30. with
only four votes in favour of the
suggestion.

The response of NUR dele-
gates to today's strike vote was
unclear last nicbL Some said
thev would definitely vote for
such a motion. a%l some added
that they would propose it if

necessary.

However, while acknowledg-
ing the reluctance of their
members to rake such serious

Soldiers riot

About 300 Indian soldiers
rioted in a suburb nf New
Delhi. They looted a store, set
fire to vehicles and attacked
police.

5r„ — - r

* = ecu nVEKEJCE

Shuttle on time

— "bjim,

that many NUR members will Qr arbitration. Both BR and the industrial action, manv del^

w WR arc understood to be keen pates felt that the strike call
of the industry s Closed shop that Lord McCarthy should chair shmtld be supported,
arrangements and will turn up it Acceptance of this proposal National newspapers are
for worfl But in private many miRhl aUow ^ strik e to be likely to be delivered normally,
acknowledge that rank and file deferred quickly by the following a decision by the
loyalty to the union could well conference. Central London branch of the

be very strong. The investigation would Society of Graphical and Allied

Picketing may be rigorously examine the feasibility of the Trades to ignore the decision
enforced, especially in areas compromise proposal put by BR of the Sogat executive not to
such as Derby, which has Jast week on the two key pro- divert papers carried by rail
already made clear that it in- ductivity issues: more flexible to road transport,
tends to defy the strike call. rostering, and operating pas- Leaders of London’s bus

The U.S. space shuttle Colum-
bia, on its fourth flight, made
its first lift-off on lime, carrying
a -military cargo on a seven-day
mission.

Pickets will pay particular senger trains without guards.

Leaders of London’s
workers meet today in

Nuclear protest

Demons irators clashed with
nearly 1.000 police in Vireux.
France, in a protest against the
construction of a nuclear power
station.

The chan thorns the. turn constraints
ci* European Monetary. Systwr exchange
:attt. The upper grid based on the
weakest currency In the system defines
the ctoss rates hots which no currency

is scent tho iirdl may move mot* than
2h Per cent. T ha lower chart gives
each currency's divergence /row (ha
" central reie " agamst the European
Currency Unit (ECU} its el I a basket
ot European currencies.

attention to the string of about Also in the inquiry's remit Transport and General Workers’
15 key signal boxes up and down might be whether to bring London bus section eommitlee

the .country which control the forward the 5 per cent pay offer to decide whether to endorse

movement of trains: • .from September to April. The the call for an- ail-oul strike of

Both BR' and the NUR are inquiry might- ahio examine the LT- workers from July 5 made-,

gambling that their strategies structure of the industry’s last Friday by <the London

of the strike— a grass-roots re- negotiating machinery. Transport trade uniondefence

of the strike — a grassroots re-
volt against HL and the loyalty

NUR leaders are thought to committee.

Transport trade uniondefence

to the union, respectively — will be happy with such an outline

The committee's decision —
which is expected 4o endorse

Spanish blast

A bov’ 10. was -badly injured in
San Sebastian, when a knapsack
he kicked exploded. The bag
was outside an electric companv
office, often a target for Basque
separatists.

Health pay plea

. The TUC asked chairmen of all
health authorities to use their
influence to persuade the Gov-
ernment to improve its pay
offers to- Health Service
■workers. Page 8

© VENEZUELA’S decision
three weeks ago not to raise a
Eurocredit proved ill-timed
because it would have cost less
than was thought. Page 15

pay off. ' proposal but. some members of which is expected io endorse

As delegates assembled yes- the BR Board are understood the call — will then be put to
terday, Mr Weighell said that he to he less so. However, senior a conference -of delegates from
would try to delay a decision Aeas officials do not see much bug garages later in the week,
until after about noon to allow scope in such an Inquiry, and Already, at least six garages
time for any last-minute initia- Mr Weighell may well be dis- have voted for a strike from
tives to be relayed to him. appointed if he is waiting from today.

tives to be relayed to him.

Already, at least six garages
have voted for a strike from
today.

• U.S. TREASURY plans to sell
S4bn (£2. 3 2 bn) of new four-year
notes tomorrow and $4bn ■ of
seven-year notes on Thursday
Page 16

WP ? hai ™ 2*5 T T ’

SS S P ~c % pay Ct £SS"SMi£i . BY “ V,D ■».■» -

offers to- Health Service Development Board. Back Page ISRAELI aircraft dropped

workers. Page S cpraotan v-mnH w Je* 8 ® 15 over Wcst Beirut yeser-

® SEBASTIAN de Ferranti and <jay t0 UTge Lebanese civilians
Gas threat . Fred Bonner have been M Mve their lives by leaving

Villagers in Renishaw, Derby- appointed nottexecutive duree- city whilfe the two-day cease-
-shire, were toM to stay indoors lorb ' of . Au ' v ? a ^ s fire between Israeli forces and

-attar- hi triad <>hAm ir-alR at a copters. Fage 4 Palestinian eue-rrillas still he-M.

Israel urges Lebanese to leave
W. Beirut while ceasefire lasts

BY DAVID LENNON IN TB. AVIV AND JANES BUCHAN IN BEIRUT
ISRAELI aircraft dropped Some ministers urged speedy Wi

Some ministers urged speedy Wazir, the PLO military corn-
action over West Beirut before znander, said yesterday that the

to save their lives by leaving Middle East.

the city whilfe the two-day cease- The leaflets said Israel was

any shift in U.S. policy on the Palestinians were ready for an
Middle East. honourable solution, but not

The leaflets said Israel was “tiie humiliating solution the

■ after buried chemicals at a
nearby plant exploded and sent
a gas cloud towards their
homes.

Page 4

Palestinian guerrillas still held.

continuing its war against the Americans,

Israelis

CEGB is accused of being Tension in the city rose sharply

Student jailed

Student Ku Bin? was jailed for
eight years in China for praising
Adolf Hitler and “advocating

“ misleading and systematically
optimistic about the economics
of nuclear power" in a report
from the Electricity Consumers’
Council. Page 4

in the absence of any clear hope
of a political solution.

In Israel there was a growing

“terrorists" and had “not used
its full force yet" In Jerusalem

some Lebanese factions want.'
In Israel, the government

the cabinet 1 made public its faces increasing criticism over
conditions for ending the two- the war in Lebanon. Gen

In Israel there was a growing week seige of Beirut, where Mordechai- Gur, a former Chief
feeling that the Government was several thousand Palestinian of Staff, yesterday declared that
likely to order soon an invasion guerrillas are trapped. It said the past two weeks of fighting

• BRITISH GAS could face
touch bargaining over access to

likely to order soon an invasion guerrillas are trapped. It said
of West Beirut Despite the tho Palestinians should hand

latest ceasefire between. Its over their. Weapons to the Israeli soldiers had d
forces and those of Syria and Lebanese army and accept safe- lessly
the Palestinians, Israel was con- conduct to Syria through the „ -

tinuing to build up. its strength International Red Cross. - “J®, ^5™°°

smiiiut naimi< Tk. t ^ is seen in Israel as a

had been pointless and that
Israeli soldiers had died need-

the establishment of a Gestapo- siei^
style organisation. gas field 5

style organisation.

End of the line

ISLE OF MAN bank Savings

the Palestinians, Israel was con- conduct to Syria through the
tinuing to build up. its strength International Red Cross.

around. Beirut;

Palestinian Liberation

The last hand-cranked telephone f^ nr L n r v “S , l S ,t p a h “ 5 M itS
system in the U.S.. at Bryant licence revoked. Page 5

The cabinet in Israel was Organisation (PLO) . has

shaken by the sudden resigna- already rejected the Israeli pro-

Pond, Maine, is to be replaced
after 104 years.

Tost score

India 379 for S; England 425, at
Old Trafford.

• CUTtPRICE CARS from the
eRpublic of Ireland continued
to flood into Notrbern Ireland
in May, taking 24 per cent of the
markeL Page 6

tion of Mr Alexander Haig as posals and similar ones put
the U.S. Secretary of State, forward by the US. Mr Khalil

The resignation of Haig
is seen in Israel as a big blow
because of his open supporTfor
the invasion. It was his en-
couragement which led the

Continued on Back Page

• FT INDEX of grocery prices
Rrioflv fell in June for the first time in

Dnttny ■ io months. Page 6

Explosion in Grootvlei gold T

mine, near Johannesburg, killed • KNIGH TCOMPUTER Inter-
two miners. national is placing 2.45m shares

. a native of « 60p each prior to joining the

■ cSiS^^ Me^o was USM ou Friday. Page W
. .'sighted -in Norther nlreland. e R01VE EVANS Investments
- reaching 90 mph killed will bid £&2&m for _ two

-^at- least 30 people in Brazil’s plantation groups to acquire a
>- : Parana state Stock Exchange listing. Page 14

• KNIGH TCOMPUTER Inter-
national is placing 2.45m shares
at 60 p each prior to joining the
USM on Friday. Page 14 I

Owen victory likely to provoke
power struggle within Alliance

BY OUR POLITICAL CORRESPONDENT

SPD /Liberal Alliance fully for Dr Gwen, who is very

a R01VE EVANS Investments
will bid . £6-2 6m for two

could face a prolonged power much nearer his own age and
struggle if Dr David Owen wins much of a rivaL

the SDP leadership, election on
Friday.

^'Parana, state.

>‘ T. ;

' The liberal leader has agreed
not to make any public state-

y - •••• - CONTENTS —

^British Steel Corporation: Justinian: Tripartite arbi-
> Crippling lack of de- tration ■' 10

MrAleyander Haig: Behind *** ^ ^

TSfa^? t " W Philosophy Edilori^ eoinmwt: SOg
behind the networks ... IS resignation of Mr Haig,

Dr Owen made it clear at the ments on the SDP leadership
weekend that, while he might contest because it might be seen

be prepared to see Mr David as interfering In another party's
SteeL the Liberal leader, nomi- internal affairs.

nated as the Alliance’s Prime^ Yesterday, however,

Profile: Mr George

Shultz 2

Ministeivdesignate for the three' publication of an NOP poll in
weeks of an election c a mp aign, the Observer showing Dr Owen

he would not be prepared to very much more popular among
come to such an agreement well the electorate, ( some senior

resignation of Mr Haig;

in advance of a general dccliiKi. Liberals were becoming increas-
An Owen victoiy could face ingly concerned at the prospect

Management: Wedgwood’s London’s “green giant”
'success with quality gite 12

the Alliance with 18 months of of Dr Owen winning,
what one . senior . . Liberal Tt has become clear

Mr Jenkins’ claim last week
that the electorate would not
vote for the Alliance unless it
knew well in advance who
would become the Prime Mini-
ster in the event of an Alliance
victoiy.

He said it was perfectly
reasonable to leave open the
is&ue of who would be the
Prime Minister until after the i
election.

But Dr Owen said that if
there was natural agreement
between the two parties on who
should be Prime Minis ter- .
designate, “it could be helpful

• i \

circles 10 ”

Lombard: Ian Hargreaves Survey,
on job creation - 13 UK Prc

deserfted yesterday as ** a pro- last week that the nature of the
longed beauty test ” between Dr Alliance was the central Issue

UK Properly Inset

[ Owen and Mr. Steel with the
two leaders jockeying for
I power and popularity.

It has become clear over the to . be “ P*““*

st week that the nature of the D i oa “ >r 1136 duration of the
liance was the central issue election campaign. ’
the campaign. He would, be said, “be per-

of the campaign. He would, ne said, "be per-

TKe differences between the ®ectiy content. If it became

two candidates were highlighted £tear that the best person was

\ mi

At* -

Appoifitmnus UK -
. - imamatipnal ...
Bm-Rim .........

Building Notes ...
But'nran'*- Diary...

Coftipany Ttewa „V

.Craanrard ■■■■-.—
Cwttita tn .' ...

Ecffomartcats '

RnanciaJ Diary

Inswanca - 17

InU. Cap. Markets If

inti. Co- N»ws

Lb* .U »

labour - *

Leaders **

ta tiers - J*

Lombard

Management i

Men & Matters ' tt
Money . & Exehrtgs. 20

Mr Steel said well before the- in a speech from Dr Owen at David Steel, to serve under him,
)P leadership contest begun the weekend. He repeated his aad I believe in the spirit of

— 2 SDP leadership contest begun

PBriSmSrtBry o«£ * that if Mr Jenkins became

naern# _ w leader of the party he .would

SSSJES** 0011 * a S be prepared to stand aside for
tv and Radio'!!!”! to him to lead the Alliance.
uk piaw*. 4. sand a Mr Jenkins would probably

?*** H be nominated as 'AHiance leader

KTu ‘ z fairly soon in the event of

view that while the SDP and <rar Alliance be would be pre-

Li be ra Is shonlff work closely to- pared to do likewise.”

be prepared to stand aside for g ether, it was essential they re- Hr Owen’s readiness to serve
him to lead the Alliance. tained their separate indenties under Mr Steel may go some.

Mr Jenkins would probably to the extent of putting up can- way to repairing his relations
be nominated as 'Alliance leader didates against each other once with the liberals, but his tjefini-
fairlv soon in tiie event of proportional representation has tion of the Alliance will sot
vtinnme the SDP: contest been achieved. please Mr Steel, who Hke Mr

Waalhar

Wofld’ fcccn. Ind.
World Stock Mkts.
World r r*do

tt winning the SDP: contest.

For latest Share Index phone 01-246 8026

Mr .Steel would not, however,
rbe ready to make way grace-

tion of the Alliance will sot
please Mr Steel, who tike Mr

*ue etaoi shrdlu emfwy cmf m 'Jenkins, favours a much closer
Dr Owen also took issue with relationship.

BRITISH RAIL (BR) sttil
hopes to be able to n in a
very limited service on
certain branch lines today if
sufficient key National Union
of Railwaymen (NUR) staff
report for w<rk.

Members of the Associated
Society of Locomotive Engin-
eers and Firemen (Asfef)
and the Transport Salaried
Staffs Association (TSSA)
are expected to report for
doty as norrnaL Bat the
chances of being able to run
any sort of service will
depend on NUR members,
such as signalmen, deciding to -
work.

BR is unlikely to be, able
to run any sort of Inter-City
services, or commuter services
in the South East. But there
is a possibility that services
on some branch lines will go
ahead. Members of the NUR
Derby branch, for instance,
who have said they will
reject the strike call, arc
expecting to run some ser-
vices.

BR executives will meet
later this week to decide
whether they can continue
paying staff who report for
work.

Sir Peter Parker, BR chair-
man, told employees in a
letter last week that they
would be paid for the first
week. If. however, the
Government decides to cut
off (he Public Service Obliga-
tion. which is the grant paid
to BR. it could bave no
alternative to borrowing in
order to pay wages.

The Aslef dispute earlier
this year is estimated to have
cost BR £S0m which, combined
with the effects of the reces-
sion, has pushed op the fore-
cast loss for 1982 to £160m.
The NUR strike will put rail
finances under even greater
pressure.

The Government, which
has giveh c\ery indication -

that tt intends Io hack the
BR board, has warned that
BR will have to manage
within 'the present financial
limits. This coaid lead to cut-
backs in services following j
the strike; while the freight
division of iBR. which has
been on a recovery tack,
coaid lose some business
permanently.

Following the Aslef dis-
pute. BR had to buy back
passengers with cheap pro-
motion fares. These have
been successful, hut pre-
dispute levels of revenue
have not been recovered.

The effect of the stoppage
on most industries will be

BY JOHN ELLIOTT. INDUSTRIAL EDITOR

THE gloomiest report on the
state of manufacturing industry
to be produced by the Con-
federation of British Industry
since the Budget is being pub-
lished this morning.

It warns that order books for
both home and export business
no longer appear to i»e
strengthening in many com-
panies and says that demand is
specifically weak in raced manu-
facturing industries.

Order books

The report will be used this
week by CBI leaders to
reinforce recommendations, they
are to issue to their members
that companies should reduce
the size of pay increases during
the coming year.

The slowness nf the British
economy to climb nut of the
recession is also reflected in the
latest forecast from the London
Business School nut today. The
school has lowered its predic-
tion for growth this year for
the fourth time running. It is
now expecting output to grow
by only 1 per cent compared
with a prediction of 2.8 per cent
made la-st June and a March
projection of 1.5 per cent.

hosing for rises of around 3 to
5 per cent and will say that
companies which can afford
nothing should try not to pay
any increases that are not
Matched by productivity im-
provements.

The gloomy CBI report is
based on its monthly industrial
trends survey. It contrasts
sharply with the extremely
cautious but noticeable opti-
mism et'ident after the Budget
when companies believed they
bad reached the bottom of the
recession.

The decline in the Sevel of
pay setil-.-iuents during the past
year has helped boost company
profit margins. Nevertheless,
this morning's survey shows
that (he number of companies
expecting io raise average
domestic prices in the coming
four months is continuing to
decline.

The order book problem is
illustrated by a balance of 50 per
cent of the respondents saying

Business school

The business school, whose
forecast is now closely in line
with the CBl's. is pessimistic
about the extent to which extra
demand in the UK will suck in
more imports.

The school still believes, how-
ever. that recovery' will get
under way in the second half
of the year, with growth of 2.8
per cent in 1983. It has also
become rather more optimistic
than it was about prospects lor
inflafion, which it thinks will be
at an annual rate n» 7.9 per cent
by autumn and 7.6 per cent by
the end of 1983.

< The CBI . . . will say
that companies which
can afford nothing
should try not to pay
any increases that are
•not matched by produc-
tivity improvements. 9

Pay increases

Continued on Back Page

The fading prospects of an
early upturn will be underlined
by the CBIs leaders and
economists this week when they
start their annual series of con-
ferences on the coming pay
round.

The conferences arc aimed at
building a common front among
employers against inflationary
pay claims. But they stop short
of recommending any formal
policy.

•With pay settlements now
averaging just under 7 per cent,
according to CBI figures, com-
panies will be advised to trim
increases as much as possible
during the coming year.

Although no precise target
figures or norms will he men-
tioned, the CBI is probably

their order books are below ]
below formal rather than above |
normal, compared with only !
42 per cent in March.

Output results have also \
worsened and there had been no
increase in the number of com-
panies saying their stock posi-
tion is improving.

Only 16 per cent of the 1,700
respondents expect the volume
of output to rise in the next four •
months while. 63 per cent expect
no change and 20 per cent fore-
cast a decline. •

The CBI may consider .
reducing its current forecast
below 1 per cent growth if the •
monthly surveys do not pro-
duce more optimistic results
later this summer. The
Treasury's last forecast — at the
lime nf the Budget — was L5

per cent.

£ in New York

— j June 25

Spot | S1.7225-725o|

*1.7380-7205

• IIIWIIUI I u.-m-vcTB yuiu.'tA-u.to pm

5 months) 1.56-1. 61 pmll.46- 1.51pm
L2 months 5.25 -5.40 pm4.B5.5.05 pm

curit;ies

Commercial and Industrial Developers
in East Anglia

Current developments in:
Cambridge, Ipswich, Bury St. Edmunds,
Norwich, Lowestoft, Kings Lynn.

Further development and investment
opportunities urgently required.

Shop, office or industrial propositions
throughout Eastern England and the
South-East actively considered.

Details to Dencora Securities' retained surveyors

. . Chartered Surveyors

16 Suffolk Street 13-15 St. Georges Street
London SW1Y4HQ Norwich NR31AB
01-930 9731 0603 617338

-• financial Times" Mondax ?tme 2S 1682

OVERSEAS NEWS

Yugoslav

plans on
economy
backed

87 David Buchan and AJeksandar

Lefol in Belgrade

THE RANK and file of Yugo-
slavia's ruling Communist
Party lias given its backing to
the Government’s economic
stabilisation programme, which
with The support of the Inter-
national Monetary Fund is aimed
at cutting inflation, making
exports more competitive and
meeting all debt obligations.

The country’s economic crisis
dominated the 12th party con-
gress. ' Many of the 1.547
•delegates strongly criticised past
-policies which fuelled an infla-
tion rate oF 40 per cent
last year and amassed a gross
hard currency debt oT S19.3bn
by December 1981. Such
criticism is Implicitly directed
at the country’s previous
leadership.

The congress lasts until to-
morrow. But so far no
one has protested the biting
■import cuts this year or has
suggested that an easier way
out for Yugoslavia would be to
ask Western banks for a
-rescheduling or postponement
of repayment of Us debts. In
The first five months of this year
$1.7bn was repaid in principal
and interest, on medium and
long term loans, but a further
$3.1bn falls due between June
and December. In this month
alone Yugoslavia is due to repay
nearly $lbn.

While accepting the hardship
imposed by the IMF-backed
austerity programme, industrial
workers who make up one of the
biggest blncks of delegates at
this conference made clear that
they wanted equal sacrifices
front the service sector and from
the budgets of the federal,
republican and local govern-
ments.

Delegates were warned that
austerity will last a long time
Mr Kiro" Gligorov, a central com-
mittee member and key author
of the stabilisation programme,
said it would last at least until
the next party congress in four
years' tune, and maybe longer.

In the longer run, the pro-
gramme aims at changing the
economy's structure and achiev-
ing external convertibility of the
diner.

A draft resolution, to be voted
on tomorrow, speaks of the need
for market forces to be given
greater play in the economy and

Polish budget
plajs approved

By Christopher Bobinski in
Warsaw

THE POLISH Parliament’s
budget committee has finally
accepted the Government's re-
vised budget proposals which
include a cut oF Z1 15bn
i £9S.3inl in this year's planned
budget deficit.

Last week, the budget com-
mittee sent the budget proposals
back to the finance ministry for
changes which would incorpo-
rate deputies’ suggestions, the
first time this has happened
since the war. On Friday it
ccrepted the revised plan.

The deputies have urged that
the subsidies to industrv which
Mr Marian Krzak, Finance
Minister, had planned be cut
by Z1 3Sbn and that payments
to the food sector be increased
bv ZI ISbn.

Paul Betts in New York profiles President Reagan’s new Secretary of State- a polished diplomatic and political performer

Shultz: an old Washington hand returns

MR GEORGE SHULTZ, the
new U.S. Secretary of State, was
in Europe on business for his
company, Bechtel, the giant con-
struction and engineering
group, when President Reagan
unexpectedly announced Mr
Alexander Haig's resignation.

Despite the shock Mr Haig's
resignation caused, Mr Shultz's
appointment is not altogether
surprising. He has long been
one of President Reagan's most
trusted and respected advisers,
especially on economic matters.
Indeed, Mr Shultz played a key
role in helping Mr Reagan
forge an economic policy during
the election campaign and the
subsequent period between the
November 19S0 landslide victory
and Mr Reagan's inauguration a
few months later.

Shortly after the election, Mr

Shultz’s name was considered a
likely candidate for high office,
including among other cabinet
parsts, the Secretary of State.

Mr Shultz, however, stayed
on at Bechtel as number two
behind Mr Steve Bechtel Jr, the
head of the Bechtel dynasty of
San Francisco.

Mr Shultz, before taking up
his job with Bechtel, had a
glittering political career in
Washington. But as late as last
September, he was insisting that
he was “enjoying” being an
entrepreneur, seeing the prob-
lems and workings of business
from the inside.

At Bechtel, Mr Shultz has not
been confined to the problems
of building energy plants. He

lives on the Stanford University
campus, not far from Bechtel's
San Francisco headquarters,

Bonn shocked by
Haig resignation

BY OUR FOREIGN STAFF

THE RESIGNATION of Mr
Alexander Haig as U.S. Secre-
tary of State, prompted at least
in part by the pipeline equip-
ment embargo which has dis-
mayed West German leaders,
has come as a shock to Bonn.

But West German leaders,
particularly Chancellor Helmut
Schmidt, have been comforted
by the choice of Mr George
Shultz as successor. One senior
Foreign Ministry official said
Mr Shultz is Herr Schmidt’s
“ best Friend " in the California
Republican group.

The Chancellor sent a per-
sonal message to Mr Haig say-
ing he was saddened by the
former etcretary of tate’s
resignation.

“Your unique experience as
military leader and creative
statesman, your firm belief in
our common cause have been
invaluable for the alliance."
Herr Schmidt said in his tele-
gram.

It was known in Bonn that
Mr Haig was more sympathetic
than, other members of Presi-
dent Reason’s Administration
to Europe's point of. view
favouring the construction' of
a natural gas pipeline from the
Soviet Union to western
Europe.

Mr Haig reportedly disagreed

with President Reagan's deci-
sion to tighten sanctions against
the pipeline's construction, a
decision sharply criticised by-
Herr Schmidt.

In Paris, the French Govern-
ment, in spite of worries that
ihe resignation of Mr Haig may
lead to a deterioration in U.S.-
European relations, hopes Mr
Shultz may prove to be as
sympathetic an ally as his pre-
decessor.

M Claude Cheysson. the
French Foreign Minister, said
he was “very surprised" by Mr
Haig's decision.

Officials said the two men
had established close ties and
“largely convergent" views on
European affairs— a reference
to- Mr Haig's moderate policy
towards the Soviet Union.

It was pointed cut, however,
that Mr Shultz also knows
Europe well, and is not
regarded as a hard-liner on
East-West relations.

The French Government is
clearly hoping Mr Shultz's
known determination and per-
sonal friendship with President
Reagan will allow him to act
independently, and adopt
similar polices on Europe and
the Soviet Union to those
followed by Mr Haig.

Few regrets in Moscow

BY ANTHONY ROBINSON IN MOSCOW

MOSCOW has expressed few
regrets at the departure of Mr
Haig. A commentary by
Pravda's Washington corres-
pondent yesterday described him
as a man full of confusion and
contradictions who had contri-
buted to the wider loss of con-
fidence in the Reagan
Administration * at home and
abroad.

In effect Mr Haig had been
chosen as a scapegoat for the
mistakes of the Reagan Admini-
stration, the report said. This
had led to a widening gap be-
tween the U.S. and Western
Europe, and new divisions be-
tween • the U.S. and Latin
America because of Mr Haig’s
support for Britain in its
“ military adventure in the
south Atlantic."

Pravda also blamed Mr Haig
for supporting what it called

India...

the pages of

TIMES OF INDIA
loirectory
and

the “genoridal policies being
followed by Israel in the
Lebanon, ” and said he was also
largely to blame for the 16-
month delay before the US.
Administration agreed to begin
strategic arms reduction talks
with the Soviet Union. These
talks start in Geneva on
Tuesday.

Pravda made no comment on
the dppointanent of Mr George
Shultz to succeed Mr Haig, but
a Tass commentary on the
Middle East situation yesterday
pointed to the U.S. veto of the
UN Security Council resolution
calling for Israeli withdrawal
from the Ldhanon as a clear
sign that the world should not
expect any basic changes in U.S.
policy.

“ Alexander Haig's resigns-,
tion evoked in Arab conserva-
tive circles dangerous illusions
and hopes for positive changes
and a 1 more balanced approach ’
in U.S. Middle East policy."

The U.S. actions “ show con-
vincingly once again that the
unconditional support of the
U.S. strategic ally, Israel, has
been and remains the corner
stone of the U.S. political course
in the Middle East," Tass con-
cluded.

where he Is a professor in the
Stanford Business School.

He is remarkably soft-spoken
and gives an overwhelming im-
pression of calm. He seems as
if he never loses his temper.'
As a result of his long political
career, he has won widespread
regard, in the U.S. and abroad.

Mr Shultz is a conservative
both in economics and politics.
His reputation for being a
polished diplomatic and politi-
cal performer was earned dur-
ing his five years of government
service during the Nixon
Administration-

He was first appointed by Mr
Nixon as Secretary of Labour in
1969, rose to become Director
of the Office of Management
and Budget m 1970, and then
became Secretary of the
Treasury in 1972.

Dismay
likely in
Peking

By Tony Walker In Peking

THE departure of Hr Alex-
ander Haig from the Reagan
Administration will not be
welcomed in Peking, and may
even be viewed with dismay.

China regarded the former
Secretary of State as its “ best
friend" in the U.5. govern-
ment— at least those were the
words .used by a senior
Foreign Ministry official on the
eve of Mr Haig’s visit to
Peking last year.

Mr Haig was a foreeful ad-
vocate within the Administra-
tion of the need to maintain
a good relationship with
China. He was convinced of
the strategic importance of
that relationship.

While senior Republicans,
notably President Reagan,
were making contradictory
statements about U.S. rela-
tions with Taiwan In the early
days of the Administration,
Mr Haig was doing his best
to keep things ou an even
keel.

In recent weeks, It appeared
that he was winning his argu-
ment that the U.S. relation-
ship with China must be pre-
served. and that a way most
be found out of the apparent
diplomatic impasse caused hy
the row over continued U.S.
arms sales to Taiwan.

It was Mr Haig who first
made encouraging remarks
about China’s proposals, put .

1 forward lasf- September, for
the peaceful reunification! of
Taiwan and the mainland. It
was also Mr Haig who pushed
for the drafting of a form
of words that would resolve
differences on the Taiwan
question-r-what is being dub-
bed as “Shanghai Communi-
que Mark IL”

Mr Haig's association with
China dates back to the visit
he made to Peking to prepare
the way for President Nixon’s
trip to initial the original
Shanghai Communique in
February 1972.

The Chinese will no doubt
see Mr George Shultz In the
more traditional Republican
mould. They will hope he will
adopt Mr Haig’s approach to
the problems of China and
Taiwan.

Pretoria Vegref

Mr “Pik*’ Botha, South
Africa’s Foreign Affairs Mini-
ster, said he learned of Mr
Haig’s resignation with “ great
regret and disappointment,"
hut expressed the hope that
his successor would continue
a policy of “ constructive
relations " with South Africa.

In Turkey Premier Bnlend
Ulnsu also expressed regret
over Mr Haig’s resignation.

He left the Nixon cabinet in
the middle of 1974. After dis-
agreeing with Mr Nixon’s deci-
sion to introduce price and wage
controls, in the middle of 1973,
Mr Schultz- decided to resign.
But Nixon succeeded in persuad-
ing him to delay Iris departure
for about 12 months.

At one time Mr Shultz was
extremely' close to President
Nixon,

When Mr Shultz left govern-
ment, Mr Steve Bechtel lured
him to Join the Bechtel group.
Although working for Bechtel,
Mr Shultz did not disappear
from the public eye. While be
did not join the Reagan Cabinet
—some say he was approached
but turned the President’s
advances down — although he
claims he was never offered any
cabinet job- — he has served until

now as chairman of -the Presi-
dent's economic advisory hoard. .

According -to some insiders,
Mr Shultz declined to take part
in Mr ReaganV -first cabinet
because it already included Mr
Caspar Weinbergec, the Secre- v
tary of Defence and another old
Bechtel hand. Mr. Weinberger;
was; the company’s general
counsel. U. ■[ ' -

There will Obviously he a
strong temptation now to Tegard:
President Reagan's- cabinet as
even more solid bastion of
Californian republican: ^politics.

: - Because erf its. association with
key': Reagan advisers* Bechtel
has sought to make it clear that
this does not mean it has a back-
: door connection. With; the - White
House.

. Mr Steve Bechtel Jr, shortly
after President -Reagan's land-

slide victory; issued a memoran-
dum to ' his company’s* senior
officers. It read: “ We must not,
under any Circumstances, seek,
or appear .'to seek, any special
advantage or favour because of
personal relationships which we
have with persons in or dose to
-tiie Government or to try in any
way to trade on those relation-
ships.”

Mr Shultz is likely to be a
welcome appointment both in
the U.S. and abroad. : Xf he has
one problem it is that at times
he appears a little too cool. But
-his colleagues' .and subordinates
.'at Bechtel as'-'. well as .his
students at Stanford appear to
have wanned to him. -

A former colleague remarked
that Mr Shultz is the sort of
person that, grows on you once
you get to know him*

George Shultz: served under-
Nison

Arabs see U.S. Mideastpol
as key factor behind change

. BY JIM MUIR IN NICOSIA.

DESPITE THE many alternative
theories circulating in Washing-
ton, many Arab observers firmly
believe that Mr Alexander
Haig's resignation as Secretary
of State stemmed directly from
the crisis in Lebanon, and - that
his replacement by Mr- George
Shultz will mark a tumittg-point
in the region's affairs — though
a difficult and possibly danger-
ous interim period may lie
ahead in the immediate future.

Thas view was summed .up
in the reaction of a Palestine
Liberation Organisation (PLO) ■.
spokesman in Beirut, who com-
mented: “This means we have
won the war, though we may
have a hard battle or two ahead
of us still. ' - (Israelii Defence
Minister) Sharon wifi try to do
his dirty business before the
Americans get tough with him ,
but he will fall just as surely
as that other general with
leadership ambitions just fell in
Washington.”

This interpretation is by no-
means incompatible with reports
of increasing strain between Mr
Haig and other top UR. officials,
notably the President’s national •
security adviser, Mr \ William
Clark, and Mr Caspar Wein-
berger, the Defence Secretary.
It. is based on analysis of U.S.'
reaction to the Israeli, invasion
and on evidence accumulating
on the ground-in Lebanon.

•' From the early hours of the
Israeli - invasion, Arab analysts
became . increasingly . confused
about U.S. policy on the affair. .
Previous Israeli actions — the
raid on the Iraqi reactor, the .
bombing- of Beirut last July, and
the effective annexation of the
Golan — had all prompted at
least some level of “punish'
ment" from Washington. U.S.
officials had indicated that
Washington was exerting con-
siderable pressure on Israel not
to launch an invasion which had
been so widely predicted and

.threatened. : ; . - .

' Yet when the moment came,
there .was little visible reaction
-from Washington. - .The closer
-.the Israelis . pressed In .on
Beirut the louder grew the' G-S.
silence, despite, a v string of
“ceasefires" arranged^ by- Presi-
dent Reagan’s special envoy, Mr
Philip Habib.

Political .talks' started- once
the Israelis clamped their siege
on West Beirut They involved
Mr Habib, the Lebanese Govern-
ment and political leaders, and
(indirectly) the PLO, . and
the seven-member Lebanese -
National Salvation Committee
was charged with .producing a
unified Lebanese' .posttiom

• .The committee was reported
to have reached agreement at
its first meeting on. ’June 20
bn a PLO proposal for a disen-
gagement in i he Beirut area,
with Lebanese -Army forces

' acting as a buffer. The Israelis,
were to pull back several . miles,
while the Palesttmiiun guerril-
las would retire to - the Beirut
- camps - with cast-iron- U.S. and
other guarantees that ' they
would not be attacked. •

- Two days later the. Israelis
unleashed an attack- on Syrian
positions in the mountains
. above Beirut, and stepped up
bombing and bombardment of
the city’s southern suburbs.

Announcing his resignation
labt Friday, Lebanese. . Prime
.Minister Sbafiq aI-W«8zah said;
"Every time • we approached
agreement! we. see this military
escalation aimed -at pressuring
us. We cannot work under such
blackmail. Do you think ! can
stand silent while Philip Habib
1 watches our suburbs being

• bombed, as though we were rats
in. this country.”

There were other signs that
the U.S. was demanding
surrender -of -the' PLCX Many
Arabs share the PLO’s view that'

ast policy Tunis bid to

agree on
change Lebanon

• ' ‘ By. Oor Foreign Staff

there was co-ordination -with

■^Israel on this, and that Mr Haig ARAB -Foreign Ministers con-

was tile main figure in ;this
policy.

turned emergency talks in Tunis
yesterday in an effort to reach

On Friday, Israel unteashfed a minimu m -level of agreement

unprecedented

bn the crisis hr Lebanon which

Beirut while, .according to the would allow them to recommend
PLO and the Leabnese; Mr Haig a full scale summit of heads of

sent an -ultimatum to, the PLO
demanding immediate Surrender .

state-

Eight

Foreign Ministers

to tiie Lebanese authorities. The including those from Saudi
PLO refused to capitulate, while Arabia and Kuwait, and repre*
the resignation of the (Sunni sentatives from all Arab League
Moslem). Premier and . other . members except Libya, began
ministers removed the’ political their talks shortly before mid-
cover necessary for the Opera- night on Saturday. -
tion. ' - The Arab state* were seriously

Arab mid other, pressures divided among themselves- even
meanwhile grew on Washington, before Israel’s invasion of
Saudi Arabia’s King Fahd, who ' Lebanon. There had be£ri major
has been In constant touch with disagreements last autumn over
Mr- Yasser Arafat, the PLO the Middle East peace proposals
leader and " Egypt’s President put forward by the then Crown
Hosui Mubarak made urgent Prince Fahd of Saudi Arabia 'and
representations: "• At the same over the Gulf war between Iraq
time, Mr Arafat was in touch and Iran.. . ... .

with Soviet President Brezhnev. 'The Palestine Liberation
on Friday. Organisation outlined its- pro-

posals for Arab action over the
Lebanon crisis at the Outset of

The fact that a new: ceasefire
was then announced, and that it

is the. only one to have' stude -the ; . Tunis . talks. ,It. urged
so far, is taken by Arab observers . economic, sanctions agamst 'the
as confirmation for their view U-S. to include * boycott of TLS.
that. Mr 'Haig's resignation products,' withdrawal of Arab
means, the. U.S. is turning, back -holdings from financi al intftH u-
to a policy wb'ch would safe- tions and. their reinvestment in
guard its interests in the Arab Eurooe, . .especiallv in France.

world-

and the .recall of alt Arab ambas-

If this, is so, Israeli Premier sadoi* from Washington,

- Menahem Begin and Defence - - The PLO was also said to have
Minister Ariel Sharon face an : requested .Arab .countries^ ..to
agonising- ohoioe between cutting- -sen d twwparto Lebanon- to -assist
their " losses .and admitting, its guemHas .which are trapped

failure,- or going into Beirut to

Beirut by Israeli forces.

try to finish the job despite the There was no indication that the
consequences. PLO had responded to the sur-

If /they, choose the latter gestion from the Lebanese dele-
course— as implied by their gallon that the guerrillas should
Cabinet statement yesterday— be disarmed and agree to end
. the Arab reading of Mr 'Haig’s a H military activities in
resignation will be '.tested by Lebanon,
whether 1 Washington silently .- other delegations fckBcated

Mubarak disappointed by veto

BY CHARLES RICHARDS M'C/MRJQ

PRESIDENT Hosni Mubarak;
said over the weekend that he.
was very disappointed that the -
U-S. had vetoed the French,
resolutipn in- the Security Coun-
cil on Lebanon. He said the veto
should only have been used if
the UjJ. could put forward an '
alternative proposal.

Egypt had earlier expressly
asked the U.S. not to exercise
its power of veto, which
Egyptian officials think will only
encourage further Israeli
attacks on Beirut. ;

Mr Mubarak has sent a num-
ber of messages to President
Reagan asking him to intervene
to bring about .a ceasefire and

■the wlthdrawaiof Israeli forces
from Lebanon. He has warned
that if thq current .crisis" - in
Lebanon is allowed: to continue
unchecked the entire .region
would suffer. -v'

- He has also said that the TJ&
will lose ground in the Middle.
East if it allows the Lebanese
crisis to continue and that U-S.
relations with Egypt and with
all Arab countries will suffer.

Without specifically coniraent-
iog on the resignation of Mr.
Haig as Secretary; of State,
Egypt's Minister of State .for'
Foreign Affairs, - Dr Boutros
: Ghati, said that he hoped Mr
Shultz would be more positive

condones the attack dr cracks that there was little support
the whip and caDs fhe Israelis shown for the Lebanese pro-
off. . V -- posals.

^ -■/■■■ Syria ; criticised dharply the
ft' ; '-Imt - IT/V Jack of support it bad received
II ;M.V tCIA# from other Arab states in the
1 . . .. three weeks since the invasion.

' and asked that they should at
; \ least replace its aircraft Which

in dealing with' the problems <j£ ’ Twd _ .been -shot " down oyer
the Middle East; and- above all Lebanon. Israel claims to have
the Lebanese crisis. He said- he .slio* :<tewn oyer. 86 . Syrian air-
hoped- he- would/take a .balanced - craft. ■ , -i;

view of what was happening .in '. Mr Chedti Klibiy- the Arab
the 'region, for the sake' of UJS. " league' •• 1 . Seetetent,' ■/ .General.

and Arab interests.

strongly condemned the U.S. for

: - Strained though the relation- . vetoing the UN Security Ctnin-
ship, between Egypt and the eti resolution proposed by
ILS; is, Egypt is giving no sign France caffine for an immediate
that it is prepared- at -this stage Israeli withdrawal from
to sacrifice U.S- support for the Lebanon.

.Camp .David peace process, in
which it is a fall partner.

In ids opening remarks to the
meeting he noted that the UN

Prime /Minister Dr. Fuad General Assembly had only
Mohieddin formally expressed hours later approved a similar
Egypt’s disappointment at the: resolution by 127 votes to two
UJS, veto to the UB. Ambassador with just Israel and the UB.
in Cairo. _ voting against.

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Kennedy leads race for Singapore may
„ ' . . aid Kampuchean

Democratic nomination resistance

Morocco passes investment code

BY ANATOLE KALET5JCY IN PHILADELPHIA

SENATOR Edward Kennedy
was yesterday left in no doubt
that he is the . Democratic
Party’s leading contender for
the ipresidency in 1984 after a
tumultuous reception at the
party’s mid-term conference in
Philadelphia.

The response to Senator
Kennedy dearly outshone the
reception received by five other
potential candidates who pre-
sented themselves to the party
over the weekend. But even
before the dust from Senator
Kennedy's rousing speech had
settled, former . vice-president
Walter Mondale emerged as the
party's second choice.

Challenge

Mr Mondale, who spoke to the
conference on Friday gave the
best speech of his career and
impressed many delegates with
an unexpected ability to arouse
emotion and command atten-
tion.

The four other candidates —
Senators Alan Cranston of Cali-
fornia, Senator John Glenn of
Ohio, Gary Hart of Colorado
and Ernest HoUings of South
Carolina — are so far behind
both Kennedy and Mondale that
already, even witfi two years
left before the nominating con-
vention for the presidency In.
1984, there are doubts about
their chances of mounting an
effective challenge.

On the issues the party con-
ference coijcentrated to a sur-
prising degree on foreign affairs.

The nuclear freeze movement
was the topic which generated
greatest enthusiasm and
appeared to command a com-
pletely unified response from
the delegates.

On economic policy there
were ringing denudations of
every aspect of Reaganomics
from all speakers but less
evidence of a completely united
alternative.

All the Presidential candi-
dates emphasised the need for
sweeping reforms of the tax
system which would preserve
tax cuts for the lower paid but
would prevent the rich and
corporations benefiting from
the sort of advantages granted
them by President Reagan.

Confident

The Democratic Party, whose
morale was badly shaken by
their defeat in the 1980 elec-
tion, left the convention in
Philadelphia with great confi-
dence that it would score sub-
stantial gains in the Congres-
sional election of November
this year.

Party leaders called on the
members to put all their efforts
into camnaigning for democrats
in the Senate and House of
Representatives in the hope
that the party will win a
majority in both houses in
November and thereby be in a
position to block parts of
•President Keagan’s political
programme.

By- Kathryn Davies in Singapore-
PRINCE Norodom... Sihanouk
arrived in Singapore yester-
day at the start of a tour of
the five countries of Asean
(the Association of South-East
Asian Nations consisting of
T balloud, Malaysia, Indonesia,
the Philippines and Singa-
pore) to solicit aid- for the
anti-Vietnamese Kampuchean
resistance.

The Prince, who is presi-
dent of the newly forced .
“Coalition Government of
Democratic Kampuchea " said
his guerrilla fighters needed
food and medicine, as well as
equipment like mine detec-
tors.

According ' to Prince
Sihanouk, Lee Kuan Yew,
Singapore’s Prime Minister '
has already promised him aid
of an unspecified' nature.
Premier Tinsulsmdonda, Thai-
land's Prime Minister, is
reported as having said his
country will be willing to pro-
vide assistance to coalition
members , if Thailand's Asean
partners approved.

Prinee Sihanouk . also
announced his. appointments
to three of the .four co-ordinat-
ing committees set up under
the coalition agreement in
Kuala Lumpur last week
between himself, the non-Com-
munist Son Sann and Khieu
Samphau, the leader of the
Khmer Rouge.

The committees include In
Tam, a former Kampuchean
prime minister who will sit
on the defence committee of
the new regime.

BY FRANCIS GHHJE5

FOREIGN investors: will 'beS
allowed' to hold 100 -per cent
equity in Morocrita. companies/
and will automatically be . able
to remit all profits after-. tsx to
their home base, according to.
the new investment code just
approved by parliament kt
Rabat.

The code, whirii replaces 'tone
in force since. 1973, also allows-,
foreign investors to repatriate
ail tive initial capital they
invest and accrued capital after
five years. . . : / - v - -

In a further move ,tb awxnet ;
foreign investment, t be .authori-
ties will grant a number of

rebates, of ! up. to 50 per cent
In certain cases,’ on the initial
cost of land and basic infra-
structure Itr the industrial zones
being set up' around Moroccan
cities..

Greater help will be provided
to -those foreign companies seek-
ing to establisha presence away
from the" country’s ' feranibmie
capital, Casablanca.

The Moroccan Government
hopes the new. code will at t rac t
a greate# volume' of .foreign
investment than hitherto., The-
ayesager yearly figure of foreign
mvestmdnt sine# 1075 has been

around SlOOm. --

This policy of seeking . .to
improve the flow of investment
from abroad goes hand-in-hand
with efforts to diversify the
kingdom’s trading partners and
improve export performance.
The balance of trade, which re-
corded a: deficit of -Ditihain 8bn
(£774m) last year, is a source
of considerable worry for the

.authorities.

Foreign companies present in
the kingdom have welcomed the
. new code, but they would also
like all decisions concerning
foreign investment to be
brought a single authority.

BY LARRY KJUMGER IN BRUSSELS : -

EUROPEAN Cdinm unity -.talks.;
aimed at establishing a /Com-
mon Fisheries Policy/ (CFP)
resume in Brussels tonight
the majority of the EEC mem-'
ber states closer _to « solution
than at any time since the often
hitter negotiations began nearly^

sax years ajto. l. .-V'"

■ Many obstacles remain; ; Jmw-
eyer, with most officials expect-
ing the talks.. to be -“tough ; and
difficult" . They, may -lasri
.several days. .

Still outstanding, is the tech- .
nically '. complex - problem "- nf

sharing-out' among the .main'
fishing nations, the limited'
stocks in ESC waters, by species ;
and by 1 /grognifibittil area- /■ V -

Several member, states, in-

cluding Britain;' are demanding
•larger .^otas than .those pro-
posed by tiie Commission./
-Denmark adamantly refuses
'ttt : accept . a suggested: 23.4, per
cent . .quota. .. Britain, is being
offered 35.5 .per ^ceirti .'by- ^ far-
the iaigtet share.

:' ^Denmark’s minority coatilaon <■
government “-5s -under-; strong .:
.pressure.. jfrom Its politically.
..powerful fishing industry; and ;
anti-EEC public opinion ;$ot to 1
: give -way 7 on Sts Quota demands..
/ ; It is' ;als<ri facing; the - un« :.
. pleasant : prospect .of .being iso-':
latedhy-its Community partners
just as.tt is ajtrtfflt to take over.,
•the sffr-monih-tenco.es president
xrf the EEC Owqcti of Muastess*
Commission proposals on the

other- main outstanding issue —
that of the rights' of access to
British coastal water by the
other member states — seem to
be broadly acceptable, with, the
UK retaining an exclusive or
near-exnhieive coastal belt
After several "days of high
■level technical talks in Brussels,
there' also emerged at the “week-
end a general agreement that
-the. negotiations ..should not
collapse into the kind c©f bitter
quarrels which . have- ' marked
recent? years; .-•• ' : - • ;

rPWWflClA ■riMK 1 /-‘pi^^«d daily:
pxeapt Sundays, arnkjiolfifays. U.S.,
-#ub*em»r>o& r&ea saaB.OO-Aw annum.

cnVH, .- -

‘■Jr '’4'-*

Tun * s Nil

agree o, !
Le oanoj)

Oj* c_, .

.. _ ^ V«

‘ '• - — " i ‘ 1

? -- ^5

- • -

• .

• ^ •';■;•• r -^is T; :

•- .. r, -S!5B ».

. .; s.

. . 7

■ ■

. .. -.■

. " : a-

1 ■ ■■ -v •

, : * m -*v

l- 3.
'"■’ “;«5

Financial Times Monday June 28 1982

WORLD TRADE NEWS

to Nigeria
receive clearance

on exports

BY MARK WEBSTER

NlseriP^ii 1 *£i? P SE to sowunenfs import Inspection
!^T-— rcce V e foreign agent, that a bill of lading
fo r aullions on or before the deadline

x ° f reports would be acceptable to the

^ by the central bank.

Nigerian Central 'Bank.

The bank has issued dnstruc*
that H ships which have
- £j sm 'afling ’dated on or
; . before May 15 hot which left
port after that date will be
given the necessary clearance
\ for oieir goods.

.The confusion arose over
w?®t ships werij affected by

The day before the deadline,
SGS issued a clarification say-
ing that the ships had to leave
port on .or before that date if
they were to be given a clean
report of findings — an essen-
tial document for obtaining
foreign exchange clearance
from the central bank.

Virorrfo’c “ J . T* 18 Nigerian Government

Prigems tn^port restrictions — made strong representations
-*£*.-5* ™£ . counties austerity through the Department of

. measures which halted all goods
despatched after May 15.

The ships — five from Britain,
• and others from the rest of
Europe, the U.S.." Japan and
_ Hong Kong — had been assured
by the Societe Generate de
Surveillance, the Nigerian

Trade, the Association of Ship-
pers to Africa and the British
High Commission in Lagos to
clear up the mess.

Some shippers may still be
in difficulties, however, if their
letters of credit have run out
in the meantime.

Palish authorities approve
chlorine plant near Warsaw

BY CHRISTOPHER BOBiNSKJ IN WARSAW

FETROCARBON Developments
have received an acceptance
certificate from the Polish
authorities for a chlorine and
caustic plant built under their
management at Wlodawek, SO
miles north-west of Warsaw.

The ptent, worth £80m. was
installed by Catalytic Inter-
national and is part of the
; 200,000 tonne a year polyvinyl
. chloride plant whose construc-

■ tion is being managed byPetro-
i carbon, a- subsidiary of Burma h
' Oil. It is expected to come on
. stream in 1983.

Some 90 per cent of the
• project bs finished but the vinyl

■ chloride monomer plant and

Earlier this year a Polish
official at the site, Mr Stanislaw
Adamski. had said the authori-
ties were considering pulling
ont as the Exports Credits
Guarantee Department was
holding up payment of credits
worth up to £12m still due on
the project
the main PVC installation is
still to be commissioned.

According to . ' Mr Peter
Houghton, a director at Petro-
carbon who has been ciosely
involved with the project since
work first started in 1977, the
Poles have dropped all mention
of pulling out of the contract
at this stage.

Japan car share down

JAPANESE carmakers’ share of
the West German market fell to
8.6 per cent in the first five
months of 1982 from 10.2 pet
cent in the same period of last
year, the West German Federal
Motor Office said. -
France was the largest ex-
porter to West Germany in the
period, and its market share

held steady at 8.9 per cent, the
office said.

Registrations of Japanese cars
in West Germany in January-
May were 91,100 against 114,900
in the same 1981 period, while
French registrations fell to
94,100 from 99.800. ■

Total registrations fell to
2.06m. cars in Jaxraaiy-May from
1.13m. •

Curbs on
air ticket
purchases
imposed

By'Cfaatio Richard* In Cairo

EIGHT EUROPEAN airlines
have imposed new restrictions
on ticket ■ purchases ' with
Egyptian mosey in an effort -to
reduce a backlog of new non-
convertible local funds.

Foreigners resident less than
five years will now have lo pre-
pay tor tickets either outside
the country or pay. by credit
card.. Egyptians and long-term
foreign residents will no longer
be ■ able to buy . youth and
excursion fares but will have
to pay full fare.

. Formerly, foreigners pro-
duced bank receipts showing
-they had changed the requested
amount of foreign currency at
a bank into Egyptian pounds.

The airlines’ head offices have
acted because they say the sur-
pluses have been building up
in Egypt as the Central Bank
of Egypt has been delaying the
release of bard currency.

According to a bulletin
issued after a meeting of the
airiine representatives held in
Cairo on June 20, the total
held up was E£5flm (£40m) up
to December 31 1981 and an
estimated further E£15m -till the
present.

Whereas before the central
bank would take three to four
months to release funds, some
airlines have not received any
since August and September
last year.

The airlines are uncertain of
the effect of their action. Most
tourists buy their tickets out-
side the country. But the move,
brought about because of the
shortage of foreign, currency in
Egypt, is likely further to
reduce foreign currency in-
flows.

Soviet pipeline hopes are pinned on to-day’s summit. Kevin Done reports

U.S. sanctions threaten European jobs

DESPITE ALL the ha rd words,
U.S. President Ronald Reagan
has virtually no chance of
stopping the flow of additional
supplies of natural gas from
the Soviet Union to Western
Europe. His tougher anti-
Soviet sanctions policy — said to
be aimed at gaining a political
liberalisation in Poland — stands
every . chance,' however, of
throwing thousands of West
Europeans out of work.

West German industry — both
in the shape of gas purchaser?;
and gas pipeline equipment
suppliers— is convinced that the
U.S. is lilting at windmills in
trying to halt the Soviet
Union's ambitious project to
deliver extra natural gas to
Western Europe starting in
1984.'

On a recent visit to Moscow
Dr Klaus Liesen. chief execu-
tive of Ruhrgas, the leading
West Gorman gas purchaser,
was again assured by senior
Soviet officials that the gas
would flow, as contractually
arranged from the autumn of
1984. Mr Leonid Kosiandov, a
deputy Soviet Prime Minister,
said last week that the 'pipeline
would be ready to go into opera-
tion in 1983.

The reason why the West
German gas industry takes such
assurances seriously is simple.
The Sonet Union is no under-
developed country when it
comes to producing and trans-
porting natural gas. It is the
world's biggest exporter of gas
— accounting for 31 per cent of
total gas. exports in 1981— and
is the world's second largest gas
producer, after the U.S. —
accounting for 29 per cent of
world natural gas production
last year.

The 8,415-mile export pipe-
line that the Soviet Union is
building from the massive
Urenpey natural gas field in
Western Siberia to the West

German/Czech border accounts
for only a sixth of the 16J50
miles of large-diameter gas
pipelines that the country, is
seeking to install under the
current five-year plan. (The
last 560 miles are in Czecho-
slovakia.)

The other five-sixths are
being built in any case with
East bloc technology — the
Soviet Union has been building
gas compressor stations for 30
years. The export pipeline — •
planned with Western equip-
ment— -is only one of six Knes
the Soviet Union Is presently
building from West Siberia to
Western parts of Russia and
beyond lo customers in East
and West Europe.

...The pipelines from West
Siberia arc being laid parallel
to each other for much of the
route. President Reagan's
opposition to the one export
line has raised it to the status
of a prestige object for
Moscow, argue the West
Germans and through which
pipeline the export gas flows is
irrelevant

Even without Western equip-
ment Moscow can force through
a pipeline to West Europe by
switching domestic resources to
the job and by denying
domestic consumers in the
meantime increasing gas
supplies. It is a sacrifice,
argues West German industry,
that the Soviet Union would be
perfectly ready to make to
prove its independence of U.S.
technology.

In addition, the Soviet
Union has more time available
than is perhaps at first apparent.
The first deliveries are due
towards the end of 1984, but
supplies will start only at a
very low level. The peak of
supplies— in West Germany’s
case, for instance, 10.5bn cubic
metres a year— will not
reached until 1988-89.

Deere, the world’s largest
manufacturer of farm equip-
ment. may have lost the
chance to win a Soviet con-
tract worth as much as SI 50m
S200m because of the Reagan
Administration’s trade sanc-
tions against the Soviet
Union. Mr Robert A. Hanson,
Deere’s president and chief
operating officer, is said to
have told Mr William Clark.
National Security Adviser,
and Mr Malcolm Baldrtge,
U.S. Commerce Secretary, act a
While House meeting that
Deere had held talks on a
possible agreement to supply
the Soviet Union with tech-
nology to build a ISO hp-
tractor. Mr Hanson, accord-
ing to Deere, said the sanc-
tions made it unlikely that a
contract could be concluded.

Pressure • on the Soviets is
also reduced because of the
the .lower volumes they have
contracted to supply to West
Europe. The project that is
being realised today is very
different from the scheme
talked of two to three years
ago. Originally, Moscow pro-
posed selling 40bn a n of
Siberian gas a year to West
Europe, drawn from the Yamal
peninsula and transported
through a bigger line or two
parallel pipelines.

So far they have contracted
only to sell a total of 20.4bn cu
m a year to West Germany,
France, Austria and Switzer-
land, though a further Sbn cu m
is still being negotiated with
Italy. The pipeline itself is
smaller— it will have an effec-
tive annual capacity, with all
compressors, of no more than
be '25-28bn cu m a year— end the
gas will come from the

Urcngoy field which is already
in production.

The damage the Reagan em-
bargo will wreak on tbe other
hand, is to tbe industrial
fortunes of a number of West
European companies, who have
taken orders totalling several
billion dollars for the supply
of 41 pipeline compressor sta-
tions. Much of the equipment,
though under manufacture in
West Europe, Is under licence
from U.S. companies, and this
is the lever President Reagan
is using to stop equipment sup-
plies u> tbe Soviet Union.

The biggest groups hit are
AEG-Telefuoken of West Ger-
many, John Brown of the UK
and Nuovo Flgnone of Italy,
which are manufacturing 125
gas turbines under licence from
General Electric. There are
also Creusot Loire of France.
Dresser of France, and Mannes-
rnarm Demag of West Germany,
which are building 68 compres-
sors under licence from Cooper
and Dresser in the U.S. In addi-
tion Alstbom At! antique was to
supply turbine rotor spares also
under licence from General
Electric.

Tbe position Is perhaps most
critical for jobs at AEG's tur-
bine-making subsidiary AEG-
Kanis in Essen, where the
Soviet contract for 47 turbines
acounts for more than 50 per
cent of the order book.

According to Herr Heinz
Durr, AEG chief executive, the
very existence of the Essen
plant is endangered together
with thousands of jobs. The
Soviet contract was taken last
autumn at rock-bottom prices
chiefly to save the plant from
closure. He said last week the
U.S. measures would not stop
the delivery of Soviet gas. “We
think it is illogical to push
through the gas deal, to buy the
gas from the Soviets up to the

year 2009. but not to be allowed
to deliver the compressors.”

Talk by some West European
government leaders of taking
the U.S. before the inter-
national courts will hardly
alleviate the position. Legal
actions could drag on for
months and for companies like
AEG-Kanis the crisis is so acute
that decisions on redundancies
are only day or weeks away. It
cannot continue to produce
equipment on the current scale
for an order that is embargoed
and which faces every prospect
of being cancelled by the
Soviets.

Simply to press ahead with
the manufacture and delivery of
compressor station equipment
in defiance of the U.S. embargo
is also hardly an option for a
company with the widespread
international interests of an
.AEG. Penalties the U.S. could
impose include black-listing
from tbe U.S. market, as well as
civil and criminal penalties such
as hefty fines or tbe arrest of
company executives to the U.S.

The intertwining of inter-
national business interests
would Ii3vc made such moves
appear incredible before last
week, but President Reagan’s
latest moves are pushing
relations hetween the U.S. and
its West European allies to this
dangerous direction.

Only a rapid political solution
can- help and all hopes are now
pinned on the European Com-
munity summit meeting In
Brussels today where the
jeopardised pipeline deal is high
on the agenda as a potent
symbol of frayed U.S.-West
European relations. Against
such a background, it is perhaps
not so surprising that one
placard at the recent anti-
Reagan peace demonstration in
Bonn read: “ Better to have gas
from the East than rockets from
the West”

SHIPPING REPORT

Tanker market suffers sharp drop in trade

BY ANDREW FISHER

THE WORLD'S ‘ shipping
markets are plumbing new
depths of gloom each week,
with shipbrokers seeming to vie
with each other to find the most
depressing ways of describing
trade.

in the tanker, market for
instance. Galbraith Wrightson
said several owners must have
been happy to take their
summer ' holidays “to avoid

having to face up to the stark
realities of the market."

The only areas which had
kept up any semblance of acti-
vity, it added, had been the
Caribbean and the Mediter-
ranean.

The Gulf has been semi-
dormant, with only around half
a dozen fixtures from there last
week.

The amount of tonnage trad-

ing out of Khaig Island off
Iran has also slumped, with
only one fixture arranged for a
part cargo of 130.000 tons, dis-
charging to the West at World-
scale 52 j.

. But Galbraith hoped that more
crude oil would be moving from
Iranian terminals in the near
future, even though it had been
suggested that Iran will be put-
ting up its oil prices from the

start of July.

E. A. Gibson noted that there
had been some interest for
ships of up to 150.000 tons load-
ing to Indonesia. One was
arranged to Trinidad at World-
scale 25$.

On the dry cargo side, busi-
ness was again slack. The rate
for grams from the U.S. Gulf
to Europe fell further to $6
a ton.

World Economic Indicators

UNEMPLOYMENT

June ’82

May TO

April TO

June TO

000s .

3JI6U

2369.4

3,0073

23803

12-8

1X4

1X6

113

May TO

April TO

March TO

May TO

000s

10,549.0

10307.0

9354.0

8348.0

9.4

9.0

April TO

March TO

Feb. TO

April *81

W. Germany

000s

1,710.1

13HA

1,9353

1,1463

6.9

7 A

4 A

France

000s

1,92*2

1,9645

2J003S

1345.7

8.7

‘ 73

Italy

000s

22793

2301 J

2304.4

1,884.4

103

Netherlands

000s

4817

486.1

49X8

333.7

6.4

Belgium

000s

51BJQ

523.7

529.7

4263

123

7X9

1X0

103

Source '(except UK. U.S.. Japan!: Eurostat

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UK NEWS

eading’ facts on N-power

BY RICHARD JOHNS

the Central Electricity
Generating Board is
a report out today of being
“ misleading and systematically
optimistic about the economics
of nuclear power." _

The study, commissionea by
the Electricity Consumers'
Council and written by Gordon
MacKerron, yoices the
criticisms of CEGB Investment
apraisals included in last ye»’s
Monopolies and Merger Com-
mission report on the board’s
operations.

Many of Dr MacKerron s
assertions are strongly con-
tested by -the CEGB. Senior
officials say the study has been
largely — and “ uncritically
drawn from the MMC report,
that it is unscientific and tabes
no account of greater elabora-
tion recently introduced into

the board’s appraisal method-
ology.

Dr MacKerron charges that
CEGB investment appraisals
“build in a systematic optimism
about the future” and plant
related costs are based on the
best possible outcome nether
than on tiie basis of c&r&al or
most likely ones.

He concedes that pressurised
water reactors might make
nuclear power substantially
more competitive than coal but
says that “ait present fee un-
certainties are too great—
particularly in .fee possible
effects . of world-wide safety
developments on UK costs-4o
suppose that FWRs wfll neces-
sarily fill that role for the UK."

At the same time he acknow-
ledges that, if there was a mora-
torium on nuclear development.

increased demand for coal and
the greater bargaining strength
obtained by miners would lead
to a substantial increase in the
power of coal.

-CEGB officials were quick to
point out that Dr MacKerron
had ignored the broader scope
of its projections introduced as
a result of the MMC report, in
spite of the fart that these had
been published six weeks, ago.

The GEGB

In the CEGB statement of the
case for Sizewell B power
station, published in AgmU, five
planning background scenarios
for appraising capital and fuel
costs for different types of
generators are used instead of
two as previously.

While rejecting the MMC
accusation - of nuclear bias in
estimating key parameter

values, the CEGB has accepted
the need for improved per-
formance, procedures and
presentation.

In particular, it has admitted
having been optimistic in its
assumptions about construction
times, which in the past have
been based on targets.

CEGB officials take strong
issue with one criticism made
by Dr MacKerron about the use
of historic costs in assessing
the economic of Magnox
Nuclear Power and the
Economic Interests of [ Con-
sumers. By Gordon MacKerron.
Research Report No. 6,
Electricity Consumers’ Council
Dr MacKerron is Fellow of the
University of Susses and a
member of its Science Policy
Research Unit

A RANGE of Loire wines
•• specially tailored " to suit the
British palate is to be launched
later this year.

French producers are to make
a push over the nest few
months to gain a bigger share
of sales in the UK, the fastest-
growing wine market in the
world.

The wines have been created
by the Caves de La Loire, the
largest co-operative in the
Anjou and one of the 10
biggest in France. They are the
result of a study into British
wine tastes which has been
going on since 1973.

A fifth of all Loire wines
sold in the UK come from the
co-operative, which exports
about 1.3m bottles a year to
Britain. The company also
plans to launch a range of
traditional Anjou rose and red
wines, as well as its sparkling
white and rose.

French wine sales to Britain
rose by almost 23 per cent last
year to 177m bottles.

Woodworking federation
reports improved trade

BY OUR INDUSTRIAL CORRESPONDENT

IMPROVED TRADING in the
first five months of this year is
reported by 95 per cent of com-
panies interviewed in the
British Woodworking Federa-
tion’s latest trade survey.

Its report, published today,
shows that half of these com-
panies also expect further
improvement during the sum-
mer months.

But on a less optimistic note,
the report also stresses that
only 20 per cent of companies
were working at full capacity at
the beginning of this months
most averaging between 70
and 85 per cent of capacity. A
number of companies Stressed
gnntimiing . tr ading difficulties,
and were “no less concerned
about the short duration of
many existing contracts as well
as the general unpredictability
of forward workload prospects.”

The federation says that the
improvement in the industry's
fortunes, compared with very
depressed levels last year,
directly reflects increased

activity in new house building.

Half the companies covered
in the survey have increased
their workforces since the
beginning of the year by an
average of 10 per cent Fewer
than 10 per cent of companies
have continued to shed labour.
Short-time working Iras gener-
ally declined.

The federation continues to
be concerned about a “power-
ful threat" from imports, and
believes that it may have
grounds for anti-dumping action
concerning Taiwan.

“There is also continuing
concern Aver low profit margins
and over-keen pricing in the
fierce competition that exists
for available work,” said Mr’
Peter Shapcott, director.'.

# The Builders Merchants
Federation reports that sales by
members in April this year were
4 per cent up on April 1981.
This is the third increase over
1981, after 1.3 per cent in
March and 3 per cent in Feb-
ruary.

NHS staff

may practise

privately

THE Minister of Health, Mr
Kenneth Clarke, bas informed
the British Medical Association
that community physicians can
have the right to practise
privately hi addition to their
normal duties, their annual con-
ference was told this weekend.

Community physicians are
employed by health authorities
and take part in the adminis-
tration and planning of health
services and preventative
medicine.

The offer was announced by
Dr Stuart Horner, chairman of
the BMA's Central Committee
for Community Medicine, to 70
representatives of British com-
munity physicians in London.

The " minister agreed 'that
whole-time community phys-
ic Laos should be able to
undertake private practice on
the same terms as whole- time
hospital consultants up to a
limit of 10 per cent of their
NHS salaty, Dr Homer said.

>TG seeks law to bind its joint operations

BY JOHN ELLIOTT, INDUSTRIAL EDITOR

THE British Technology Group
has so far failed to persuade
the Government to introduce
legislation next year which
would provide a statutory basis
for its operations.

It wants the legislation to bind
its parts — the National Enter-
prise Board and the Naticnal
Research Development Corpora-
tion— -which have been operating
jointly for more than a year.

The informal link-up appears

to be working so smoothly that
ministers have not been per-
suaded to find room tat the
crowded parliamentary time-
table for the legislation.

Some ministers want the legis-
lation because it would elimi-
nate the name of -the NEB which
has been a target for many back-
bench Conservative MPs since
the organisation was set up by
the last Labour Government
seven years ago.

This has not proved a strong
enough argument. But no final

decisions will be taken until the
Queen's Speech in the autumn.
A short Bill might be introduced
later.

- Sir Freddie Wood, part-time
chat mi an of the BTG and of its
two sections, may express his
wish for legislation in the NEB’s
annual results to be published
tomorrow.

The BTG and the two sections
have common board members
and the same chief executive.
The staffs have also been
merged. But each investment

has to\e allocated statutorily to.
one or other organisation.

Financial packages have to
be designed to fit in with one
or other’s guidelines and finan-
cial criteria. Some investments
straddle- bofet organisations
which could cause problems
when businesses fail.

One compromise being con-
sidered is for the Industry
Department to produce common
guidelines so that the organi-
sations find it easier to operate
together.

■am

&•

Govemm ent

Stock

Low c ommis sion.
Interest paid in full

National Savings
Stock Register

Two Index-linked Gilts have been added to
theNational Savings Stock Registec They are:

•2 % Index-linked Treasury Stock 1988.
Dividends 30th March and 30th September;

•2*£% Index-linked Treasury Stock 2011.
Dividends 23rd February and 23rd August.

Both the interest and the redemption value
of these stocks are linked to the RPL

Altogether there are now 52 Government
Stocks available through National Savings,
and there are clear advantages in acquiring Gilts
thisway.

The rate of commission is particularly
altractiveonmodestiiwestinent^
you buy £2,000 worth of stock you pay only £&

And the interest is paid gross. Although the
dividends axe taxable, it may well suit you not to
have the tax deducted at source:

Tfiju can buy up to €5fiOO worth of any one
stock on any one day.Thexeis no limit to your
total holding.

ISjifll find all the details at the Post Office.
Ask for the Government Stock leaflet, which
includes a list of the stocks available:

Pick up an application form with its prepaid
envelope at the same time.You can then post your
application direct to the Bonds and Stock Office.

f$\ National Savings

Stock Register

Brisk trade
at Barclays
forecast for
Saturdays

By William Cochrane

BARCLAYS BANK plans to
open 33 of its branches on
Saturday mornings from
August 14, providing busy high
street activ&ty in Engand and
Wales, the (bank said yesterday.

A note circulated to t3ae
bank’s staff at the weekend said
Barclays had settled o A Satur-
day opening in 460 hjgjh street
brandies. Opening win be
phased in . from mid-August
until September XL

Clerks are being offered an
extra £24, £32 or £40 for Satur-
day morning work, depending
on their grade. ’Fay wM be In a
separate contract — which in
each case represents an increase
of a third over an earlier offer.

Barclays said yesterday it
would probably need a pool of
about 10,000 “volunteers” to
achieve a manning level of
between five and 10 staff at
brandies on Saturdays. It
accepts that many of them
would not want to work, every
week.

Bard ays group employs
about 70,000 people in the UK,
some 55,000 of whom work at
branch level. It emphasised
yesterday that Saturday morn-
ing staff would not be drawn
solely from, those who worked
there on a Monday to Friday
basis. For example, a GUy of
London employee, could work
in - commuter territory, which
bri ght be closer to borne.

Barcfays’s policy of charging
customers of cither banks 50p
for cashing: a cheque wiH apply
on Saturdays, when the bank
expects to confine itself to deal-
ing with cheques, .money trans-
mission and loan applications.

- While the deal has not been
accepted by the Banking Insur-
ance and Finance Union,
Barclays noted that BIFU is not
opposed in principle to Satur-
day opening. With derks typic-
aHy earning £ 5 , 00 0-£6, 000 a
year, the b\pk is confident ft
wM have enough 1 volunteers to
Twafcg the scheme viable.

Vauxhall
scheme vote-
likely today

By William Codmne

A WIDELY-CRITICISED £200m
development- scheme for the
south bank of fee Thames at
Vauxhall Bridge is expected to
he voted on in the House of
Commons tonight.

Parliamentary approval ss
being sought for a special
development order which would
allow Anaibridge, the
developer, to avoid normal
procedures. An option to
acquire a key element of the
12-acre Vauxhall Cross sffie will
expire next month.

Mr Michael Heseitine, the
Environment Secretary, lamf
the order before Parliament 10
days ago. It grants full plan-
ning permission for a mixed
development of offices, housing,
shops, recreational facilities, a
river wall and a riverside walk.

The project involves more
than lm sq ft of office space in
six separate zig-zag blocks,
ranging in size from 71,000 sq ft
to 320.000 sq ft There would
be open spaces, about 200
terraced apartments and 50,000
sq ft of shopping facilities.

In mid-May it was announced
that a design by Sebfere All sop
and Mr Ted Hsppold. senior
partner of construction engin-
eers Buro Happold. had been
picked from 128 entrants to win
a competition organised by the
Royal Institute of British
Architects.

Plans to redevelop the
Thames-side site have prompted
strong opposition from some
local groups. Since the order
was laid before Parliament, 4t
has bfeen c riti cised by conser-
vationists amt Labour MPs.

When Mr Heseitine accepted
the winning design in May, he
said that he was not imposing
has personal taste in laying the
order, but was putting forward
a proposal tested in open com-
petition and selected by the
client from’ three finalists.

Horse sense
decides rest
is best cure

THE traditional method of
using hot irons to treat lame-
ness in horses does not work,
according to a team of
researchers.

The age-old method, called
line-firing, Involved placing hot
irons on skin overlying the
injured tendon. It is used world-
wide to treat tendon injuries,
which are the biggest cause of
financial loss in the racing
industry.

But after a five-year study,
Bristol University researchers
say line-firing does not improve
the rate of recovery after injury,
horses are subjected to more
psychological stress on the first
day of threatment than by any
other method.

The researchers conclude that
“rest is best” among the com-
mon treatments,- which Include
linefiring, pinfiring, tendon
splitting, and rest alone.

Prof Ian Silver, head - of
Bristol University's pathology
department, directed the project
involving three university
departments. .

Two recruited froi
industry to board

BV MKHASL BONN* AfiROSPlACE aWRSSPOWWT ,

SIR JOHN KING, chairman of
British Airways, has moved to
strengthen the board of the air-
line's subsidiary, British Air-
ways Helicopters, with
appointment of two top calibre
industralists as non-executive
directors. _ . „

They are Mr Sebastian De
Ferranti, formerly the head of
Ferranti Electronics - and Mr
Fred Bonner, deputy chairman
of the Central - Electricity
Generating Board.

These two appointments are
part of Sir John’s overall plans
to reorganise and strengthen
progressively the various parts
of the rambling British Airways
empire.

He plans to give more
autonomy to the helicopter busi-
ness with eventual possibility of
selling it off to private enter-
prise; although it is understood
this is not an immediate priority.

British Airways Helicopters is

one of the - more • profitable
wholly-owned subsidiaries of the
state airline. In the last - finan-
cial year to the' end of March,
BAH is believed to have earned
a . substantial pre-tax jprofit, al-
though the prods* amount is
not likely to be dasSosed until
publication ' of the British Air-
vrays -group’s profits, ' later (titis.
sommer. -i

Mr -de Femanti’s and Mr
Bonner’s appointments follow
the recent appointment of Mr
Michael - Girin to the post of
wij.Twg ih g director of British
Airways Helicopters. Mr Ginn,
who- was formerly with BAITS
rivals, . Bristow Helicopters, was
appointed to take over from-Mj*
Russel Keefe later this summer.

British Airways Helicopters,
as one of the two largest heli-
copter operators in fee United
Kingdom,' is. one .of fee moist
vigorously expansionist of Bri-
tish Airways' suhsidiaxiefi..

Laker man’s venture

BY RAYMOND SMODOY

A FORMER director of Laker
Airways, made redundant by the
collapse of fee airline, has estab-
lished a company at Gatwick
Airport to replace damaged
luggage on fee spot.

Mr John Seear, managing
director of fee new company.
Luggage Replacement Services,
says the aim is to reduce the
costs, delay and aggravation in-
volved in replacing damaged

Twelve airlines — - including
British Airways, Air India,
Dap-Air; and Air Florida — are
taking part in fee luggage re-
placement scheme. .

Passengers travelling to Gat-
wick wife. those airlines, whose
luggage, has been damaged in
transit, win be limited from July
1 to chow fee' damage fe the
airMne or agent /

Docklands

;wV*"c .
■“SWaf-t

aircraft for-
the City

•kq:

... . ..... ... . . - . i«r

By ; CodS^^'.^

A DEMONSTRATION ofi-.

7 Short Takeoff’ aatL,

(STOL) aircraft op
Isfc of Dogs —

described aa - fa

■experimemr “by .Brym^vP^':-
ways; jcint : propos er
Mnwfeni ' constnaefem
.a STOL^mlid

Royal Docks area of New^aijL v;.
The * - demonstration

(

:7J ft

generation v ofi.-' STOL « .

“arff. veay qpiet

are tgectellyr ^

operate ,in;'mrt6^'a?sa6v
ca using adverse" .

impact,” accoM&g,

Beck, dhainnan ' af MoWieim.- ? v v , -
The .Dash. . 7 -is /a .
four-engined furfkH^rop\^nnaft' ’
with; a range of

Its ■

tend ahd'take off.s>sta^y'feat
it '^sickly ' reaches a \Tm&xt 'at-..
wfepL it eannot .be.bewd-frara. ..
fee ; ” groimd; : ; ; aqc pg i Bng; .V;
•Brymon. ••• J- ; .- ; v • .• 7 -

The demonstration was* well :
Attended. -W- local; gbwcnmefit •
offices: aria. : produced ;“not ?a. ;
wood ‘ of dissent,” according to _ .
BiymoiL It W 3 s part-a ; apro^
gramme

artfeged ■ by fee ■ profeWss iri 1
conjunction wife ; fee - . London
Docktods IJeTwopdcit Coi^
poration and conmmnky : groo^is. -
:■ Mowiean •'■ and ' Brymon . .-said
earlier : tins miorife feat^wtofie
fee proposal . was known ta be of
interest Jp fee LDDC, and that
local cranmnnity -leadens ;isa& ~
reacted favobrafiily' to fee^ldea, V.
the sfeem’ft-lual to prove itsalf
acceptable to loc^ residents^

Week’s parliamentary business

. TODAY

j Commons: Debate on Opposition
motion on the repressive opera-
tion of immigra tion regulations.
Motions on Town and Country
Pteobing. (Vauxhall Cross)
Special . Development Order.
Proceedings on Iron and Steel
Bill (Lords). •

Lords: C wknhni Justice BH1,
Committee.

Select Committees: Treasury
and Civil Service — Subject:
International Monetary Arrange-
ments. Witnesses: Ford of
Europe Lie. and Unilever pic
(Room 15, 4.30 pm).

Public Accounts — Subject:.
General Lighthouse Fund. Wit-
nesses: Mr M. D. M. Franklin,
Department of Trade; CommJs-
stpners of. the Life and
Northern lighthouses; Trinity
House (Room 16, 4.45 pm).

Social Services— Subject: 1982
Public Expenditure on fee
social services. Witness: Rt
Hon Norman Fowler, MP, Soaal
Services Secretary (Room 21,
5.30 pm).

TOMORROW

Commons: Northern Ireland Bffl
remaining stages.

Lords: Food and Drugs (Amend-
ment) Bill, T hard Reading:
Merchant Shipping (liner Con-
ferences) Bill, Second Reading-
Civil Jurisdiction and Judg-
ments Bill, Commons amend-
ments. ReHef from Forfeiture
Bill, Committee.

Select Committees! Procedure

(Finance) — Subject: Procedure
(Finance). 'Witness: Mr Jock
BruceGardyne, MP, .Eco nom ic
Secretary to the Treasuty
(Room 15, 4.15 pm). _

Committee on Private Bills— -
Cumbria. Bzfi (Lords)- (Room 6,
10J30 am). London Trmraport
( Liverpool Street) BUI (Room 8,

11.00 am).

WEDNESDAY : .

Commons: : Gonrideriction of
Lords amendments to the: Local
Government Finance (No. 2)
Bill until about 7 pm, fallowed
by motions on fee Northern
Ireland (Emergency Provisions)
Act 1978 (Continuance) Order,
and on fee Northern Ireland
Act 1974 (Interim Period Exten-
sion) Order. . . . - ■ _ . . .

Lords: Taking of Hostages
Bill; consideration of Commons
amendments. Stock Transfer
Bill. Committee; Supply of
Goods and Services: Bill, Third:
Reading. Debate on second
report of EEC "Agricultural
Trade Policy. Debate on fee
12th report of the EEC on re-
vision of the European Regional
Development Fund. . Unstaftred
Question on Lord Rothschild’s
report on . fee Social Science
Research fiSouncaL • .

Select Committees; Home
Affairsi-Subject: . Home Office
procedures for investigation of
possible miscarriage of justice.
(Room 8, 1L00 am). .

Public Accounts — Subject:

Investment Appraisal. Witness;

Sir- Anthony Raw3iiKon,' EM-
Treasury (Room -J6. : 4.00 pm).

. Treasray and <3vil r S#vttfe.;S<D &■
Ckraimittee-HSilbject: Ihe-fejac-
tnre of person^. inooane . texa- "
■tion fed 1 Income support WJt--. -
nesses;j.S4r^ ^Brfeiton,RSyHjWjit-
Bfflns, ^ HQ-Vina -&-I?raidc
MP (Rflbm: 35. loa pm)." -
Wrfslrt^ Affairs —v Subject:
Scrutiny <Wfe& Offica.Depart- .
toepts.-; Witriessefl-'-Welfe Office
ofScia&fltoom. 18, 4i30 pm). '
Gommittee on^private Bflls-;-
Gunrfma BST (Lords) (Roron fi, :
10^0 v am); 'iottdw : Transput
(Liverpool" -^ireeQ BS (Room
5, 10.30 am). ■.

;•• • THURSDAY - - . : ■

Commons: Debate on a .motioh . s
to: iapprovti ; 7 fee . statem&rt
Defence Estimate ( First pay)- '■ * ‘
Lords: 'Criminal . Justice. BBU'
Committee. Cinematograph' '
(Amendment) Bin, Report
Select Committee: Cemmfttee:bn
Private .• Bills— unopposed - Bills.
Greater London . - Council
(Money)— (Room li. 4.00 pm).
Cumbria Bill (Lordsl^rfRoom
4. 1030 am): LpndfeTranspwt
{Liverpool .Street) BUI— (Room
■ 5 . 10B0 am). . f :

' , FRIDAY : : " - : -

Commons: Local r Government .
(Miscellaneous Proviswira)-Bfll: '
consideration of Lords, feiend-
meittA '••. •'

Lords:' Criminal- Justice BUI,
Committee; (unless, completed '.
oo.previqusday)V ~.\ f :

The Republic of Panama
US$225,000,000
Medlinn Imn Fhumciag

Leed Managed by:

ThsBanfcof

ItakyckLU.

attanCspttalH

KangyoBank,

LhRttsd

The Dai-lcM Kmgyo
Libra Bank United
Uoyds Bank Internatioital United
TbsTokai Bank.UmHad
Ai-UBAF Group

Colead Managed fay:

Banco Central SA

Banco de Colombia SJL — Panama

Bank of India

Be nquede Paris etde*Pays-B 3 s-(pKiBna Branch)
Banquo NaiionatodoPwis

Credit Sulssa

The Dfllwa Bank, Undbed

The Industriat Bank of Japm, Umnod

The Long-Term Crecfit Banket Japan, Un^d

The Nippon Cmfit Bank, Ufe

Tbtonto Dominion CCuisqm) N.V.

Mansgedby:

The Full Bank, limited ' .

Sumitomo Bank, MaichantBanWng Gnx^>

ftowdedby:

Banker America NT&Sk

The Chase Manhallan Baric. NA

UggE BanRiruaMfflaCBaSmaaj] L&naBd

_ [Panama Branch) _ _

fenquedgBfesaarePaysfijBKPsnanwBa^
UriondeBanquasArabasaRan^eafr-URAF. -..

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Newtork Agency

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Ttia Cho-Heung Bferit, Ltd.

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LtovdsBankGafiforria
Banco 09 B*ao-Miami^..

Banco DfclRaCjficoCPanamali
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Financial Times Monday June 28 1082

UK NEWS

British Gas may
face tough talks
on N. Sea field

ET MAURICE SAMUELSON

BRITISH GAS could face tough
bargaining over access to a
large new gas field in the North
Se*. TJie field is seen as the
natural successor to Norway's
Frigg field, which, supplies 30
per cent of the gas distributed
in Britain.

Statoii. the Norwegian state
oil corporation, said in Oslo
that negotiations on the dis-
posal of gas from the Sleipner
field will begin in the autumn.
Output from the field will build
up -in eight years' time, shortly
before the Frigg field is
depleted.

British Gas “appears to be
interested" i!t switching to
Sleipner, say Statoii officials.
They put its recoverable
reserves at 200bn to 210bn cu
iQl. In the past two weeks
they have held talks with about
20 potential customers,
throughout Europe, and believe
they will be in a strong posi-
tion to determine the selling
price.

The field's location means
that Norway has at least three
options on where the new gas
should be landed — through the
existing Ekofisk or Frigg Field
pipeline systems or via a new
pipeline to Scotland or the
continent.

Statnil hopes that the forth-
coming negotiations will enable
it to propose by the middle of
next year where the gas should
be landed.

At least three production
platforms would be installed
and the gas would come on
stream in about 1990.

The company nates that the
Frigg field will be depicted at
the end of 1992 and that this
will be "very serious" for the
UK. To maximise their
revenue from Sleipner. the
Norwegians want to base a sale
'agreement oh the landed price
of the gas rather than on the
well-head price.

Energy Department faces
specialist staff shortage

BY RAY DAFTER, ENERGY EDITOR

THE ENERGY Department is
facing a critical shortage of
petroleum engineering special-
ists which could hinder plans
for a new round of e xplorat ion
licences.

The department has embarked
on a recruitment campaign for.
reservoir evaluation specialists
who are almost 50 per cent
under-strength.

The department is offering
Salaries of up to £26,100 to lure
19 specialists from the oil
industry. It wants to return to
a complement of 39 before
applications for. new drilling
licences late this year.

The department said salaries
were in line with those offered
by til exploration and produc-
tion companies. It hopfs to
attract specialists who are seek-
ing a home base rather than the
extensive travel normally asso-
ciated with the oil industry.

“There is a general scarcitv
In the industry of these types of
specialists and the department
is in competition with the indus-
try for their services. We are
running an intensive advertising
campaign," the department
said.

Engineering orders rise

NEW ENGINEERING orders in
Britain were up 6 per cent m
March compared with last
December, but were still 5 per
cent lower than the 19S1 peak
last June.

Department of Industry statis-
tics showed new orders for the
home market were up 7.5 per
cent in March over December
and export orders were up 2.5
per cent. .The trend of total

sales in this sector has been
virtually flat for almost a year.

The department also pub-
lished figures showing that
machine tool sales and orders
remained depressed in March.
New expnrt. orders were 17 per
cent lower, in March than last
December, while export sales
were down 11.5 per cent over
the same period. New home
orders were oil 3.5 per cent and
sales off 8 per cent

'Tie up
withlt

and you cover the most
threatening of all business
risks: credit failure.

ft IS aldUer Moslpropledontrealisehowbig

a risk this is. In fact your Debtor Asset— the money
other people owe you — is likely to be 4 0%, forty'
percent of all your company's current assets.
Probably the largest, certain ly the most vulnerable.
Because unlike, say: raw materials or finished
goods, which you ‘obviously’ insure, debtors are
not uuderyour control in the same wav: Credit
Insurance covers this risk. Nothing else does.

Trade Indemnity Credit Insurance
takes the rideout of credit

M 2 — ■ — JVa^icM me ’.i hat kind of service vou conkl offer I

j *neup r,

i wifhTP - ^ — i

| Take the first step no% 1

( Send lo: Me Charie:, McCannn. — -
'larki-unp Mjrtijwr. HvLtPOSif Addros

'larki-unp Mjrtijwr. HvLtPOSif Addros
(no m JJni'Tcmuiu'di.

Trade Indimtiiij rk.

Trad'* hvijmrhv 1 iou<c. • — - * ■

' Trade hvjjmrhy I jorif?,
12-54 Great Lwcrr. Street
London

Telephone 01-759 45 ! L

Isle of Man
bank loses
licence

By Ray Maughan

THE Isle of Man bank. Savings
and Investment Bank, which is
at the centre of a legal dispute
with Mr Jim Raper, has had its
licence revoked -as a- result of
anl investigation of its affairs by
Treasury Officials, the Govern-
ment Treasurer, Mr William
Dawson has announced.

The investigation is con-
tinuing.

The bank's deposits, thought
to total some £40m, have been
frozen.

A spokesman for Ore
Treasurer’s department said a
lack of confidence had been
created in the wake of the
dispute with Mr Raper’s private
company, Gasco Investment

The legal dispute centres on
the bank’s injunction, which is
still in force, taken out against
Gasco and Mr Roper's other
company. St Piran, for loan re-
payments. Gasco has responded
with two legal actions for as yet
unspecified amounts. The
actions are defended.

Savings and Investment's
activities are confined largely
to the Isle of Man although it
acts as one of the banks to
Pennine Commercial Holdings,
the quoted UK group, and has
a 25.S9 per cent stake in the
fuel oil and lubricants dis-
tributor, United Guarantee
tHoldings).

Lome Barling looks at a pottery wWclt has come through, the recession unscathed

Fine china continues to travel well

THIRTY SEVEN obina. and
pottery plants, out of a total
of about ISO, have closed in
Britain in the past three years,
and membership of the Ceramic
and Allied. Trades Union has
fallen -from almost 50,000 to
31,000.

The severity of this dimin-
ution has been felt most acutely
in the heart of the pottery
industry, Stokeron-Trent,' in
Staffordshire. A number of old
and famous names have dis-
appeared ‘ recently through
closures and even the larger
concerns, such as Wedgwood
and Royal Doulton, have,
suffered badly.

Demand for fine English bone
china, however, has held- up-
better than the market for less
expensive earthenware, • in
which foreign competition has
been intense.

Aynsley China of Stoke-on-
Trent, which was taketa over
by Waterford Glass of . Ireland
In 1970 for a Httle less than
£lm, is now contributing that
amount. annually to the profits
of the cut-glass company. It
has also maintained full employ-
ment during the past two years,
increased its profits by 19 per
cent in the past 12 months and
steadily improved export levels
—though not without setbacks
in a market where- su nival has
been the main objective of many
concerns.

One of the key factors in this
success has . been Avnsley*s-
abiLity to market its high-
quality products through Water-

ford outlets in che.IJ:S. r where
the two products have comple-
mented each other as top-quality
tableware. ' _

Ayns ley's annual' sales hove.
Increased from £600;00Q to £7„7m
in the past, decade; while: direct
exports have risen in value from.
£400,000 to JESni. . -Numbers ein-;.
ployed have a taost ■ doubled,
from. 400->to 706. • -
Mr Michael Gillow, chairman?
and chief executive of Ayristey,:

■ suffwed_Tc9S--thOT- 'that forma Ss- . performance by ; making- better

produced products.- "*. . use of 'existing 1 resources anti

. “ Waterford gaye-.us a 'chaime-. through mere’ intensive niarket-
to develop; -. the .U:S % . market, :Tag. ‘ - -

r wffich.Is .p(bw im'portaiiitA. blitrwe.-, .One of ‘.the. imd b. -factors • for

■ .ITA -‘nMnvMvia ~ s -

ThiskmdGf^rk-.fc ,
labour-in tensive-and -
-ain suited to , increase d’: V
automation .since ^manual-
decoration is involved: >

Ayn^ey's; growth: has. .been udf-'weakness, is- -a

• achieved a cstpffat-Tii-.. welcome sid_-tb--saTes.- However,

vestrfi'-exrt'of ahout-£325m: 'orver ID ' 'th» - British-. Geriuaiics : Mami-
yeots. ■ Tltfere: are -no' plans -fer -facturters’ \ Association, pointed
further^ expansion; dtibottgii ' out- that a • favourable : ratio.

• Aynsley- .recently look . over A - : r ' '*

local factory town Royal Wor-. • T - ” - •• ‘ *T

cfrs,er * . • . ‘.v : • A main factor is the valrre

" Our Eftrength'- :ls-*variety, Tile- recent •

Automation would ^estiM nwr ■* -

The association confirmed
That English- bone china sales ,
bad withstood the recession
•fairly- well, but pointed out that ,
most companies had a range ot
other ceramic products, prob-
lems with which more than off- r
set this benefit.'

- .Overall, it is felt that the
worst is probably over for the
'industry, bat the prospect of
increased . .. employment is
•limited* ' since -most companies .
have : ;the capacity to mee l .
reasonable; increases ip demand >
without additional labour.

points out ithait the -company has-
remained -firmly In. the quality \
end of the market, with such,
customers as- the ! Saudi ..ztiyal
•family - and British fasti tultoift .
pacing large sums for tableware-.!
sets. The 'company; has. also- :
widened' L its- product .: range -
through the ■ introduction-' of
figurines, floral display; ite&Sv
and, most recently,.' -oveitto-
tableware whi eh has ; become,
increasingly popular. ■

This kind ; of work isi labour-
intensive and unsuitefl- to.riit--.
creased aut omation, since -pains-
taking manual decoration;.- is
often involved. But demand has;'

■style, which ft' not wbat-we^want V 1 •.»*« uuuut, .

to dq. Additional labour; 4S- Up a -lOTIg ^©riOd of •.

, Waterford- andA^flsIey^mku^ , ; • • a .*•- : .

ketin? peffcy • in : the -U.S?' has - — — — . ~ V . " . - r .

; ye ? J ?rA nd . -.wboid- We- to- 40 <To the

any good- lt adfledUhat '■
^'■hen^ -Of.the.strang d oiler
w^BS.^-atonar: apptoacli ,stai. 6e?ng' offset- by : itigh .

« r fJ? -2' . ajferest jrates. while demand; 4a: .

> , -tjhej market showed -Uftie-

dire ? tor of ;W«fer®ftd 1 AB isfen of' j«qirtweHjeaf . Between .
also enaracagH® a greatereffdrt 'gjR^ iraj; KBOD wturkers :in‘itbe ' '

; to sell , tm .ttie j Gbirti neat %&fij '.^irsdnetry ire-eStiinoted -tirbe on
efforts are being AadeTn- estab- short-timA- - ' ' V

-fish a-bigger. presence ini'otitw, -Altiioagh - tSxere'Tvas 1 -' some
; non-English-Speafelhg; markets. -' -iragg^t J3bdt ,ube «

"Waterford- isr-..'similM4y i'op- imiustiy’s. exports ■ : '

APOsed . to - further investment '^n Ihg- fib IS- coufd jnat ' lie
: tbe presentoeonomic^ohdttibhS;, /substantiated..; because; figures-'

■ biit Mr Kealy believes -ft» com- wdre: still affected by <E £e iflSEl
>pany' could aftd improve' its Chill Service strike-' - r -' v

Parking meter
fees to double ,

PARKING METER' charges In
Belgravia, Knighisb ridge ana .
Pbhlico - 1 areas • of Westminster >
,'WllI" go Tip- in J uty.

'In the area bounded by Vaux-
ball- Bridge- Ruad. Grosvenor !
‘Rood. -Ebury Bridge • Road, 1
Buckingham; .Palace . Road and •
Terminus Place, charges at 550
.inetejs will go up from lOp to
2Qp' as hour.

• In the -area bounded, by Ken- .
sing ton Road; Knightsbridge.
-Grusveuor Place, Buckingham
Palace. Road;.. Ebury Bridge
Road aniL the boundary with
the-Jtiiyal Borough of Keiising- 1
ton and prelsea, eharges'witt be r
increased from 20p to 40p an
hour.'-

Most of the specialists will
be offered salaries at levels of
assistant secretaries and under-
secretaries — between £18.525
and £25,000. The department
is seeking six reservoir engin-
eers, three geophysicists, six
geologists, two petrophysicists
and two petroleum engineers.

Existing staff are hard pressed
in dealing with informal
development plans submitted by
offshore operating groups and
in monitoring activity on the
UK Continental Shelf.

. The work pressure will grow
when formal development pro-
posals are submitted and when
details of the eighth round of
licences become known.

.The Government is planning
to offer between 150 and 200
blocks in August or September.
It hopes to attract applications
for at least 85 of the concessions
by the end of the year.

"The eighth-round licences will
be offered over a wide area of
the Continental Shelf, including
gas producing areas,, oil pro-
ducing regions and unexplored
territories. As a further com-
plication, between 10 and 20 of
the licences are to be offered
on an auction basis.

- • r ■

1 - - - - . •».

' -

- - * , -V ■ ■ . ■ '

P"' : . :

■ . -

. • . .

- • • .-

H ' ^^** ' * * ^ V vrr'

■ ■

: . *

^ *

• * . I

-. • v v -■'CSav-SS*;.* iiSi

Tiie American Express Gold Gaid is deigned. ’ ■ ' • 'spe&y:#c^^

for people wiio travel and enteitain around the -woild chequelxx>fe, tH^:
People wfoose lifestyle and income requires, and .
justifies, an additional range of financial services.

But it’s not everybody who qualifies.

In the UK, only one bank, Lloyds Bank, can - additional acco

ofier you the Amencan Express Steding Gdd - .. - access to dur

Card. The Gold Card will give you • ’ ' - 1 :

anoverdraftof^ least £7,500

i' r»;

Pc.-u.rdc

| B

aYj

. Fmaimat Times Monday June 2S 1982

UK NEWS

Max W illrins nn looks at London Business School’s latest Economic Outlook

‘Japan has

monetary

success’

THE IDEA that a tight
monetary policy can control
Inflation without necessarily
injuring output is supported by
tiie reaction of Japan to the
two oil shocks, says a special
article In the current issue of
Economic Outlook.

The' article, by Professor
Alan Budd and Dr Geoffrey
Dicks, compares the policies
adopted by Japan and the rest
of the world after the steep
rises In oil prices in 1973 and
1979. - --

After the first oil shock
Japanese money supply was
allowed to rise at a markedly
faster rate than the rise in the
rest of the world. This was in
tune with the prevailing wisdom
that monetary policies would
need to accommodate the
higher price levels resulting
from the oil price rises.

It is argued that as a result
of this policy Japanese prices
rose faster in 1974 than those
in the rest of the world and
industrial product ion fell by a
greater amount in the follow-
ing year when there was a
general attempt to reduce
world infiat ion.

The Japanese authorities
then changed their policy
towards a much tighter
monetary stance.

After the second oil shock,
the Bank of Japan adopted
this different policy. It said
the money supply would not be
allowed To rise to accommodate
the new oil price levels and that
steady anti-inflationary pres-
sure would be maintained.

Between 1979 and 1981, the
growth of the Japanese money
supply was held significantly be-'
low the growth of world money
supply.

After this the Japanese infla-
tion rate stayed well below the
world rate and the oil price rise
caused only a modest and tem-
porary increase in 1980. Indus-
trial output continued to crow,
although at a somewhat slower
rate, and in contrast to what
happened after the first oil
shock Japan’s growth rale was
well above that for the world
as a whole. ■ ■

Professor Budd and Dr Dicks,
say that part of the explanation
for the relative buoyancy of
Japanese output after 1979 was
the improved com oeritive ness
resulting from the fall in the
value of the Yen in 1979.

“However, we would argue
that the gains would not have
been possible without the accom-
panying stable monetary policy.

Centre downgrades growth forecast

THE SETBACK to national
output in the first three months
of this year is expected to be
temporary and there will be a
steady advance in the second
half of the year, says the
London Business School Centre
for Economic Forecasting in its
latest economic outlook.

For the year as a whole, the
centre is predicting growth of
1 per cent compared with 1981.
This is significantly more
pessimistic that its last forecast,
published in March, when it
thought this year's growth
would be 1.5 per cent

- This is the fourth successive
forecast in which the centre
has downgraded its growth fore-
cast for this year. A year ago
it - was predicting that outpot
would grow by 2.8 per cent in
the current year.

Then, after a sharp rise in
the dollar last summer and a
consequent raising of UK
■ interest rales to ' defend sterling,
the centre became more pessi-
mistic. Its November forecast
was for only 1.7 per cent
growth. This was somewhat
reduced after the fall erf indu-
trial production in the water
months to 1.5 per cent in the
March prediction.

The centre has maintained
broadly the same forecast for
the growth of output in 1983.
A year ago it put this at 23
per cent over output in 1982,
the same figure as in its most
recent forecast.

The current forecast, in the
June issue of Economic Outlook,
highlights the boost which the
economy received in 1981 when
the run down of stocks almost
ended.

- However, it says a large part
of this potential stimulus to
domestic demand leaked away
into higher imports.

“In the- fourth quarter of
1980, the rundown of stocks was
over £lbn at 1975' prices, 4 per '
cent of gross domestic product.
In the fourth quarter of 1981',
destocking had almost stopped.
If nothing else bad changed.

After a. 1 per cent decline
in world industrial production
in the first quarter of 1982,
the centre expects a modest
recovery in the second quar-
ter which will gather pace in
the second half and in 1983.

■ For 1982 as a whole there
Is expected to be Little or no
change in world output with
about 3J per cent growth in
total output in 1983 and 5J
per cent growth in industrial
output.

The centre says that while
the immediate cause of the
world recession was the 150
per cent increase fu oil prices
in 1979, the main explanation
of the renewed downturn in
1981 was the strong, anti-
inflation policies of most gov-
ernments, with tight monetary
policies and high' Interest
rates.

However, It says the attack
on inflation is now producing
results, particularly in the
U.S.

GDP woflld have been 4 per cent
higher than a year earlier,” says
the centre.

Although real incomes had
fallen, private consumption held
up almost to the same level as
a year earlier, because of a 2.75
per cent fall in the proportion
of income which was saved.

“ Private non-resfdential in-
vestment was also strong in
1981. By the fourth quarter it
was 23 per cent higher than a
year eariier. The key factor in
depressing domestic demand
was the behaviour of the public
seetor . . . . But the main reason
why- the end of destocking did
not result in a major upswing
was che collapse of net trade."

■ The centre says that the fact
that destocking ended sooner
than expected may mean there
will be a smaller boost to
demand in the current year
from this source than was pre-
dicted.

It adds: "The rapid deteriora-
tion in net trade in the second
half .of 1981 means that it* is
now likely to be a much greater
negative influence on the
growth rate between 1981 and
1982 than we- previously
thought. -

“What has happened is that
import penetration has in-
creased sharply over the reces-
sion. The increase was not
apparent while stocks- were
being run down because imparts
also fell, but as destocking came

to an end a high proportion oT
the associated . increase in
demand has been met from
imports.”

The increase in imports has
been concentrated In manufac-
tured goods, with UK industrial
output falling more than pro-
portionately during the reces-
sion.

The centre estimates that
import penetration, as measured
by the ratio of imports to total
output, fell from an average
33.6 per cent in 1980 to 31.2
per cent in the first three
months of .1981. It rose to 36.2
per cent in the final quarter of
last year.

The centre has adopted a
“best guess" at future changes
in domestic policy as the basis
for its forecast rather than the
standard assumption of un-
changed policies.

“Specifically we have assumed
a 2 point cut in the standard
rate of income tax in .next year’s
Budget. In subsequent years,
further cuts in the standard
rate and hr the National Insur-
ance surcharge result in, a 25
per cent rate of income tax and
the removal. of the surcharge in
1985-80." :

No attempt has been made,
however, to . allow for . any
effects of the Falkland Islands
crisis, either in the short dr in
the long • term.

The cenh-e is rather more
optimistic^ about the prospects

for inflation 'in the short run,
and now broadly agrees with
the Treasury’s forecast: of ' an
annual rate of 7.5 per cent by
this time nest year. It expects
ear n i n gs in manufacturing In-,
dustry to be rising at a
rate of about 9 per cent by this
August.

"We expect wage increases to
remain moderate in 1983 even'
though economic .activity is ex-
pected by then to be-, picking
up more strousdy. Since : the de-
celeration of wages -has been,
achieved.- without an incomes
policy, there, is unlikely to be a.
wage 'explosion’ as happened- in
1974 and again, in. 1980.” it says.

“Companies are still severely
constrained in their price be-
haviour by the . high exchange
rate and are unlikely to grant
wage increases that they cannot
pass on in higher prices — par-
ticularly as two years of reces-
sion have left dunpany finances
in a weak condition.” .

Since companies . have -.little
scope for further Improvement-
in liquidity through - running
dowfi inventories, the centre
says it expects companies will
press for moderate wage settle-
ments to release cash for in-
vestment and rebuilding of
stocks. -

It says: “The high level of
unemploymeqt will help them
to secure the acquiescence of
the employees in this strategy.'

The corporate sector deficit,
which was nearly £2bn in 1981,
is predicted to - rise, just
more than £3bn in 1982, with a
very modest rebuilding of stocks
and an increase of investment
by about 9 per cent.

In 1983, with improved profits
and a large increase 'in company
savings and investment, the cor-
porate sector deficit \
to be almost elfininff
Economic Outlook 1981^5 Vol
6. No. 9 June 1 982. Subscription
department , Gower. Publishing,
Croft Road.. Aldershoi- 'Hamp-
shire GVll 3KR. -Rates:' UK
£65 p.a. Europe $16Q other
countries $300:

■ ■ ■ - - - - -

• • - - • • •

LONDON BUSINESS SCHOOL FORECASTS
' (March projections in brackets — percentage annual increase)

- - ’ ' A - . ' •

1981 1982 • 1983 .

• 1984 •- 1985

Annual percentage 'change
UK Gross Domestic Product: output measure _
Consumers’ expenditure . _

Exports

Imports . . _ "

Consumer prices
Money supply (sterling M3)

PSBR financial year (£bn) . .

Wholly unemployed (m) annual average
Balance of payments current account (£bn)

-23

- 2-7)

13)

23 ( 23)

22 ( 13)

L6)

• - ‘ 03

0.1)

0.6

03)

13 ( T3)

12 ( 13)

- T3(

[i4

“ “ " -TJ(

- L6)

0.4

43)

«■!(«{

33 ( 33)

Z5(

23)

-13

- 2.1)

83 (

113)

5 43)

3.1 ( 23)

13)

ia7(

.1fl8)

9.4

10.9)

7.4f83)

. 9.1 (9.9)

' *: 113

16.0

15.9)

10.9

93)

113 (TQ3)

11.6(12.1)

123 (

• 8.6 (

102)

83<

93) .

93 ( 93)

M< 73)

* 8 M

63>

2.6)

2.9

2-9)

3.1 ( 23)

3.1 (33)

7-6(

-W)

2J|

23)

2.9(2.!) .

33X2 J)

321

Cheapcar
imports to
N. Ireland
remain

T-Bjr. Kenneth Gooding,

Motor Industry Correspondent

UNOFFICIAL, cut-price car
imports from the Republic of'

: Trelandj- whlch aro threateh-
-ing to devastate the motor
trade - in Northern Ireland,-
.-continued at a -high level In .
■3ay.- - '-. ■ * -

. Of 4*593 new cars : regis-
tered in Northern Ireland |p
Hay, -L099 or 24 -per cent were
unofficial Imports.

.The cross-border' trade '
showed little : sign of easing
. even though a number of ;

manufacturers ■ — BL, . Ford,

' VoflESwagen-Andl and Renault .
among them— have introduced ;
special financial schemes to
. help , their dealer networks in
Northern Ireland. ..

-- Oars from, the Republic are
being sold aft* about 17 per
cent below lbt price in the
, north. Ttyrf Is roughly what
Northern ... Ireland dealers
previously had-, to pay for
them.

Two companies particularly
badly a ff tected were Mazda .
and Ford. Some 81 of the '
146 new Hazdasragistered in
Northern Ireland in Hay were,
“grey” Imports, representing
55 per cent of the total.

Some 396, or 343 per cent,
of the 1442 hew Fords regis- '
tered sue canto In through
unofficial channels - ^ ■■■

The Kder Agents Associa-
tion, with -310 members in
Northern Ireland and' which
claims that 1,000 of the 6,600
jobs In the dealer networks
. there are at stake, will meet
Mrj Adam Butler;; BQnhter of

- State for Northern Ireland, on

Thursday. t . ■

The association 3s - iq eensed
that there seems 1 , t* be no
protection far 'Northern Ire-
land while the Republic is
fully, protected from hffltop -
car imports. t "

- } 'Oaty authorised i mp o rt e rs
are permitted, to bring; cars
into the RepubUc and those
mast not conq»ete with any

- .Wing assembled . in . the

country. , : ..

•• At a previous meeting with
Hr David Mitchell, Northern

- Ireland Under Secretary, the
association won 'a promise
that British type approval
regulations, which cover

: vehicle safety, would be ex-
tended -to Northern Ireland.

FT GROCERY PRICES INDEX

Warm speD brings
cheap fresh produce

BY DAVID CHURCHILL, CONSUMER AFFAIRS OORRE5PONDB4T

THE FINANCIAL TIMES
grocery -prices ' Index fefl in.
June for the first, itoe - fax 10
months," mainly as' V result of
cheap supplies . of ^firesh fruit
and. .vegetables fqJJpwing the.
w-anm spefl. in May and eariy
June.' ' Vf? • 7/

The Index in.- JobA stood ■ at
149.87, compared with .£>1.0(6 in
May. "

Although there •: were: small
falls In cost in A number of
sections of the shopping basket,
the major -tejdnctiqn leading to
the overall fail in: '.fee ■ index
camq from -jfce.. lower; cost -of
fresh fruit and vegetables. This
section’ of tife shoppisej basket
fell in rost£xbafr£4&$26& May
to £393.01, to .

. . This reduc&totl, is ’ deiaiy due
to- pi enti fid - isufjpaies of fresh,
produce, arisang^fiom the warm
weather: 1 ' . .

The -Fresh Farit, and Vege-
table .7 Information Bureau
reports that .particularity good
buys are broad heaps and peas

and the “best potato buys are
. English and Brittany Prince
new. with. Cyprus and Jersey
-Royals also-good value.”

■ Cabbages arid other greens
' are also “good value ” at the
moment, according to the
bureau, although cauliflower
prices vary depending on size. _

The grocery prices index is
eoxopaled from information sup-
plied by 25 shoppers who
’ monitor a list . of over 100

grocery Items each month. The
. stores. * which form the same
sample- each month; range from
. smati. village . grocers to large
urban; superstores, .

‘The index is meant, however,
as a guide only to trends in food
priqes and should. not be taken
-as an absolute indicator of price
.levels. - - .

The FT grocery prices index
is copyright and may not be
used in any way without con-
sent. Afl inquiries should be
made. to Lucinda WefheraH at
the= Financial Times.

FINANCIAL' JTMES SHOPPiNG BASKET
JUN^ 1981 -

,.;: f ■ >rv v <, •

72039

aius

32X41 ...

Dairy produce;

Sugar, cofljM, tea told aoft .drinks
Bfead, tltor and otmk '
PKictVM and dry pobtritt
' Sauces and pickles .

Canned foods . -

Frozen -fbodi

Meat, bacon, etc.' (fresh)
lit 'told, vi

Total

11833

5536

20431

24930

63936

.39331

24132

3,18444

823.12

21039

32334

11835

5534

20337

25631

64432

41326

260.17

331 1J7

1981; januanr 13036; February 13135; Maw* 13X75; April 13433;
my 13630; Jutifc 137-37; July August 13530? September

.13630; October 137.49; November 14051; December 14134.
1982; January 144.81; February 14533; March 146J1; April 147J5;
' May 15136 ,: Jwto T4937^ ' :

CONTRACTS AND TENDERS

This -Would prqretat the bulk

Spetidiiig ri$e forecast

- BY <XJR GOMSUMSl AFFASR5 X30RfiS5PO1dDQ4T

A “ MtiDESy " increase, to. am: tween 2 and 3 per s cerrt, reflect-
sumer , : ^pending . Bfixl; ye?f.is ' to? a -boost from GozBrnmeotre-
forecastby stnridbrokMBFtfillto* Artton. and hi^ier wage
andDrew mthe

'review- .pbtoto out that
ArSfcSSSS such an outcome would still he

pre -

sales- volume to- 1982 w& be cpnstmjer oatKmis -

'•ri^riced easing of cost pres-
a stahflfetog of retail
dto

ever.'&tot;

. «*. A v. - -

• u r-: . i •

GOVERNMENT OF GUYANA

PREQUALIFICATION OF CONTRACTORS
ABARY DRAINAGE AND IRRIGATION PROJECT

1. The Mahaica-Mahaicony-Abary Agricultural Development
Authority (MMA-ADA), the executing agency for the Abary
Drainage and Irrigation Project, proposes to invite tenders, in
September 1982 from its register of prequalified contractors
whose firms belong to regional or non-regionai member coun-
tries of the inter-American Development Bank, for the con-
struction of works which are programmed to sure in March

I***:

2. The Government of Guyana has requested co-financing for the
project from the Inter-American Development Bank.

3. The project, which is the second stage of a scheme to bring
the Berbice-Abary region into full agricultural production, con-
templates the construction of secondary drainage and irrigation

. works to benefit approximately 44,400 -acres ( LB, 000 -hectares)
in the Abary river basin. . - . " -

4. Work is progressing towards completion of the first stage of
the project which includes the construction of a conservancy
dam with the Abary river control sluice, a 5,000 ft long spill-
weir. and a main canal head regulator, 46 miles of main and
branch canals. 63 miles of facade and collector drains, a sea
sluice and pumping station, 12B hydraulic structures, II miles
of all-weather road and 5 road bridges.

5. The major works to be executed for the Abary Drainage and
Irrigation Project will be let under one contract and include

-approximately— "

(a) The construction of 222 miles of secondary, drains. and 210
miles of secondary canals with an average cross-section, of .
100 square feet.

(b) The construction of 400 hydraulic structures.

(d) The construction of a flood embankment 14 miles long
with an average cross-section of 95 square feet.

(e) The construction of 11 miles of all-weather road.

(f) The construction of 2 public road culverts and S -bridge-

In addition, the contractor will be required to provide living,
office and other accommodation and buildings, to 'satisfy the
requirements for the Engineer's supervision and the contractor
himself.

6. Prospective tenderers wishing -to be placed on the register of
prequalified contractors are hereby invited to request a pre-
qualification application and questionnaire, ,whi<m must .'be
completed and duly returned to arrive- with the General
Manager of the MMA-ADA not later than 16th August. 1981.

-The prequalification application and questionnaire may.be
obtained from cither: — - - .

fa) The General Manager

Mabaica-Mzhaicony-Aba ry Agricultural Development
Authority

76 Vlissengen Road and Durban Street

Georgetown

Guyana

Cable: MIN FLAM

OR (b) Sir William Halcrow and Partners
Burderop Park
Swindon - ■

Wiltshire SN4 OQD
England

Telex: 44844 fA/B HALWIL G)

Cable: PROPULSION SWINDON WILTS

Telephone: 0793 812479 ■ "

B. W. CARTER

General Manager'
Mahaka-Mahafeony-Abaiy
Agricultural Development Authority

KINGDOM OF MOROCCO

OFFIffi NATIONAL DE UEAU POTABLE

CALL FOR TENDER No. 26/DE/82

SUPPLY OF DRINKING WATER TO THE
TOWN OF AL HOCEIMA AND AREA

• PART No. 4 — CIVIL ENGINEERING

The Office National de I’Eau Potable (OXEP) have issued
an international call for tenders concerning the project of
supply of drinking water to the towu of AL HOCEIMA.
from the dam on the Oued NECKOR. 25 kms S.E. of the
town, with a debit of 440 litres/second.

The project will be undertaken with the financial participa-
tion of the KREDITANSTALT FUR WEIDERAUFBAU
IKFW).

This notice is an invitation to tender solely for “PART
No. 4 ” of the above project, covering civil engineering.

SUMMARY OF WORKS .

— Building of a filling tank (capacity: 3,600 m 3 )
and hydraulic equipment;

— Building of high pressure plant:

— Installations of platforms and “V-K.D.”

Works will have to be completed within 12 months.

The bid in figures and the deposit representing 1.5% of the
amount of the bid must be included in an envelope bearing
the term “ SOUMISSION ” enclosed in a second envelope
containing the technical and financiaL references of the
bidder for prior studies of a similar kind, and importance.
Tender documents may be obtained at a ebst of DH 500 by
writing to the Equipment Division, Quartier.Administratif,
RABAT. Payment is to be made to: Monsieur le Directeur
General de TONES*. CCP-RABAT 106-U MAR0C.

Each bid, bearing the reference number of the tender and
the name of the bidder should be addressed to M. le
Directeur General de 1'ONEP. BJP. RABAT-CHELLAH,
MOROCCO, the closing date being 28 JULY 1982 at 18.00
hours.

BOTSWANA TRHMIV8HUl«ym^

THE TURNKEY INSTALLATION 0FA
DIGITAL OVERLAY TELEPHONE SYSTEM

PREQUAUFICAT10N OF TENDERERS

U* term TOacamanncatiaH Cttpmiaa ptposes to edato in "Hotair Svtfen br tta>
■ftffrtnr rrffhn ffigitil Tatojitm-T Fm+irnn «■! ■ njgini Imi nmrinn 11 1 Tiiiri ling fnritm Tim TnlmU 1 B
-tetangatwilf bi bW fc)r * Mkrowaw Baddm Siam. Ftsdns wffl. in part ta pmMad br tta
African DBwtopwaCT Snk.

toitand AtnptonM seriated to comm durirg Vm taS qmmridttB 1982783
NbheM I fMTWRfa On obiaerrf meertn# a 'rcadrtv arace' Hale of ScptsHtm 19B4.

The ictewaiwnitaOnBs srstra mil be compnwd ot-

1. Frw digital ra kpfee m o ewfemaas.

2 . Bqirf radto ws&ms.

3. PCM ErUnq enbanoes and resiatB Bv soils.

4. Oiginl imMiml switching centre.
iCaWewtworte (MjkeAayandftriffitatWBart}.

. - KisibaiBi«nMwattbeBBCsinuIU(co«WBksftnGariiamiDnti]lgtcsDtnc&brUI-
Mnrn3CHnria»pEtnirelamfecW«a»aSimc8ricxBaMfrecfeR4(iterataherespnBibriio{Br
■amtenre «xUnsraHfltirei of other items 1. 2. 3. aad/nr 4 or S dm or iua 4 or iaa 6 la boMoi
are iaviied to preqntifr hr wmauin to tanhr tar the prenshn rt those pans rf 0 k sptea m a lrt«y

basis. ,

Fwttar jghxBulin and adraUuns on hs» to patpaMy oaf be atoinadtram-
CafatomiWrefenftL . Chef Exasabre.

PrafeasOnsioRQUC. Boiswm W Wwhito CofTHirgtjoc.

MeravYHciBe. Theobalds Road, or RU Box 700,

LONDWWQXBHX. . SABOHME. Baswaaa.

Ttema data'tar j»«»BGfkalB» stassreoswiil be 3Q Scutcnter JM2 at 1200 hours.

ARfltotovMcaiKsnredHfm ttoarenlre towtfta uriiedTnqoaldieaMn --bietanna.*

Thu towns flftt* MafEwoaire in totnana fe- 3rd FI«x Standard Hwsb,T1ib Mafl, GABQRflK.

ETHIOPIA

EIGHT HIGHWAY PROJECT

(Second Highway Sector Pmlmtx)

GENERAL PROCURB4BNT NOTICE
Tha Govammant ol Ethiopia expects
-to receive financial assistance from
the International Development
Association (IDA) towards tha
procurement of civil workk, . equip-
ment. technical assistance and
treininB. The project wfll form s
part ol Ethiopia's Second' Road
Sector Programme end the. -first
eub-praject will be the constnrction
ol a nravel. surfaced road of an me
250 kilometres between -Nekampte
and Burs lo west-central Ethiopia
Including a bridge over the Blue
Nile River.

Construction PrequalWcations
Construction firms from member
countries of the World :Aenk;
Switzerland and Taiwan ere Invited
to be prequsliHed to participate in
the bidding lor the conatrucUon of
the Nakempta-Sure road. The works,
which will be tendered on tha
basis ol two or three contra ct»,
consist of some 2.000,000 cubic-
metres of. common excavation,

880.000 cubic metres ol rock
excavation. 175.000 cubic metres of.
borrow excavation. 325.000 cubic
metres of subbase. 4,200 cubic
metres Of concrete, 8.000 linear
metres of culvert pipes, - 12.200
cubic metres of masonry .end

90.000 square metres of , paved

drainage channels. In addition, tha
works include - a bridge over the
Blue Nile Rivet ol soma 160 metres
length end about 30 metres over
normal water level. ‘ -.-

Prequalification for the above works
was originally advertised In Septem-v
bar 1980 procurement was than
expected to be carried out under
the Seventh Highway Project (First
Highway Sector Projectl. but was,
subsequently postponed.
PraquaOfieation . lorme are available T
from the. Contract Construction
Division st tha address below.. The
dosing dm. for submission of
completed forms is Airgost 15,
1962. ’ .• - .1 ' -

fiit i io pj en Tr an sport; ;•
Cmetrudfon A u t ho rit y - - •

TO Box 1770. Addis Ababa .'
Ethiopia

CONTRACTS

AND

TENDER

ADVERTISING

APPEARS EVERY
MONDAY

Rate £27.50
per single column
centimetre

- JUSCO CQ. LIMITED

1 Advice :nu been rece iv ed from Tokyo
that at the Annual siurelmtilcra Mcettna
held on -17» Mer. IZMT a DTVidend
of Veo 1 a. DO per share erne declared to
shvetrotderE, -’- '■

Hdderx of EUROPEAN DEPOSITARY
RECEIPTS TO 'BEARER. wfeMM to Claim
thi* DMdeod le respect of th* shares
ceoreaeotnrf. by their EORs.rhontd p r e sen t
-Coupon Na if at-tbe oSkce of: ■

Hill Samuel & Company limited,
.45, Seech Street ...

London EC2P UX. - ■ :.

IlMfna form* are eVaHeble. -or . ,

. Kredlettunk LuxemboorDcotak lA,.

. S3. Bo qlersrd 'teraJ. •

reytneM 'vrU? made Ri ui . Doitara
the rate of eedihdge rnHnu on the day
. __ >wlo» preumtxOon. '

1- •■ Japan eee WHWtoMUne Tax at the rate
TV 20 %JwHi be .deducted from. -the pro-
[ cm* of the’ dividend, except le the case
of holders - refluent . In the tefiowlno
CEHinrrfer.1 ' r ■

• AustreNi .1 - Nher-xeeleod
• Beimnm

Sin:

Denmark • _ .

West Germany Switzerland . ■

Finland- IbHterf Aceh Republic

'France *' Utlted KlMdom

Italy United States M

Netherlands America .

' To obtain - payment under dstectloa of
WtthhofcDoo Tex at the reduced rate of
15% resMenta of the ebore Countries
must fUnrish a deeJ arxtton of resWcncr
as reanlred. by the Japanese Ministry of
rteenie • '

For i-e ri de uis of all other, countries a
separata declaration must be. Turn Is bed.
bMob the same end addnbe of the beOe-
•CW owner the number acd daeuMre
nsmbers of EORa held, end attesthm that
he Is. entitled to the. 5% Tax Roller par-
te. the Tex Convention.- li o t w cwi
1 the. country concerned.

0 b drawn to the bet that the

menMpned concai sl oo* ratatfns to
mTwWihoWInp Tax apply only to
i pre eaat ad' ter payment within 7

OP THE DUE DATS. Thereafter

tax wfll be dedomd at 'the fort rate of
20% and- It win be the iwomibiutr
of tbe owner to claim from tha Japanese
Tax Authortttes any retold to which be

United Kkitxkwi Income ? Tax at the

proprlake e rate arid be deducted from

the p roceed s eiHare - the. -Cdupshw v%
accompanied by ,a Upttqd .4Q.RBdoas * A A-
dxrtt of Non-restdapeo. - V-. .

Pod. I nfo r ma tion 'jnay be. obtetned; from

HHI Semuet S Company UaM.tr
Kredtetbapk Lua e Tu bo urae otee SA - -
HtLL SAMUPi A ’COMPANX LIGHTED
05. Beech Street,-. :i’ -
London . EC2P 2EX. . -

ART GALLERIES

COUUtGHL 14. Old Bond St, W1. 01-
*91 7*08. DISCOVERIES FROM THE
CINQUECINTO nptil T Aoqntt . and
ITALIAN OLD MASTER- DRAWINGS

vt,K 'MUSKY, ' M , Breton St., W1.
01-493 1572(3.' AN EXHIBITION OF
IMPORTANT XIX AND. XX CENTURY
WORKS OF ART. -Mon.-FrT 10-S, Sets:

2nd* July 9ttt

WILLIAM DRUMMOND. Covent Garden •!
Gaiters, 18 & 19C- ITALIAN VHATER-
COLOURS. C. LABRUZZI & other*. Dty.
1 0-5,30, Ttmrs. 7. Sets. 12J0. 20.

Rueeatf St. WC2. 01~838.113B.
PHILIP PANKt Mountains and NoBeSL eK-
hlMttoe of oil pabittnos et.BprBh Hottse.
New End . Square. ~WelS Walk. Hampstead
NWS. 25th June-1 6th Jelr. Wednesday
to Sunday. 12 noon to S p.m.

RKHARD OOXN GALLERY, 4. New Bond
- Stu Wl. - 01-499 5497. .EXHIBITION
Of FRENCH PAINTINGS. Dally 10-8.
Sate IM2«. . . - -
RICHARD GREEN, <4. Dover St, London.
Wl. 01-491 -3Z77. EXHIBITION OF OLA
MASTER PAINTINGS. Weekday* 10-8.
.Sera. 10-12.30. aeaea SO June.

CLUBS

evs.ha* euttivad the others bec am e. ot a
pm ley of fair May and value tor money.
Smew tram y 0-3.30 am. Disco and ton
mmtefans, Btamoroes hostesses, erdfint
Bootstawa. 189. ResancSe. -01-7M 0557.

PERSONAL

B REATH TAKING BARBICAN— NOW <W
mete? Toiaer Bate to net. o n f uin te h ed
tott^MO po. Ccmwt, Wrtl-
t “"® 01-fiTO 4372 or

01-588 8110.

KONBHIROMJ PHOTO INDUSTRY CO.

• " ; • t, LTD. • ■ f--.' "

. NOTICE- TO EDR- HOLPBRS,

FURTHER ‘To - NOTICE of Abitt 5, W82.
The Chase Mairtutos Baitk. NJi. : top-.
*»■ «• Pyposuary... Intern* EDR Holden

toe*- eiSSmneat to* ottceat ortST
DTOaftary*. AMR*, ,Cha». -MSnbmtao
SA. UntembotrcBeOW.. . 48. O oi tte toBl
eottUenteots )n . murtItJtei,bf 1 .Qoo- sbKs

-In ‘nbtlaR-'to

than I.OOOraF^

tor deilrerrln

A . further notice

« lurtner nonce Trur-ne pnbusbed-:,
IKE CHA«

June. 1982-

- TONGKAH HARBOUR

TIN DREDGING MCMiAO '

• - . 4 incorpo rated la M Maystei

■ : NOTICE TO SHARfHOLDERS

effect -from 50th jab*. 198Z the
InpdT register maintained in Tasmania,
A.KStraA*_*riJI oo dosed down and all
eteretoMthBS hr that r ea ls ter will be
transferred to the orinclpu reoWW maln-
tate ed- I n Malevste_ by vtoe principal
rtrtiliJiL Pumas Charter Menuement
Barked . 5th - PloteTl'8.S9. Wbma
Qwtral. Jataq . Ampana. .Kdala. Lumpar.

...... - By ardar of the Soarcl.

t • ' - ZULKIFLI TALI8

2dfr June.* 1982

' ' ‘SAVE ft PROSPER -

. IV. PINANCIAI . SECUR fTiy PUNS

tlkpaeon 122 tells due fair payment on

J»b -July 1952 at a rato. of 1.1 Bn per
FTnadcJal Securities -Fund unit Coupons
riptojte jraeiW to the ' Royal Bank
of Stottand -LH. Lombard Sheet Office.

24 . Lpm hard Strtert. London
f C3P 3DE. . from -whom ItsUns forms can
be obteihed. ■ Coupons must- be lodoed by
an authorised de^osttsnr and left three
days for

>>- : ' r - •

4 J ■ -.:■>< . _ JU.-J. . ■ _ • /

SCHOOL Of ORIEIffilL Xin JIFmCM STUDIES

ji'-; . (Ifnhieesky ot Loodanj

;.v. : EXTRAMURAL JJtVlsrON

^INTENSIVE LANGUAGE COURSE FOR BUSfNSSNEN 1992/93

>^e ARABIC, J-w'-. • ' . * -

t ® 2; Septemb^' - ; 13- IT Dectoober ' - •

.; •. 1983: 18^2 Aprf,.- . 18-22-July . .;

v For template begfipiers -.S6oko« teogirege only ' '

SSS 1 !? ******* OrrnMemtj&tnmuni DWelon
School of Qrteltokt and African -Studida.*Ma(etgtreot: London WC1E 7HP

i - ; Ti-? •-'’•’.V 5 -' V

".1 S-1 j .* . ■ XtA. y \ .j -i— ■ f

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fin ^ . ■

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w yhote inffiB ip. ■:

TUMM O U BUGIBOOGL
Xe

7V83. -MDC 41MS2.

■ 13/104

8 NKMZ.TWt.ZMBH

1404. Trirsu rose

Online Mem UHMe Nw> 7. Hm.-VC

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Crirar M. te2040.TW: 75 -

BNteglsWBH8 jjte N.telfca.T0te l»Laowe,lbS Zaad»IB yN, J ?30*<. Peris I
25414. Tefc Write W557S.- .- - lOLTOm IWBOT. ieh 297 IB0B.

fteteh teri l tetei7m.aHoo. itenfe. M li i ifto 8No Biftris S& Trin
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Utooto S teiwa iji, Tdq tofit 246 8025
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■ ■- SWp E;

• " r:^s«E:

• ' :? ■ ' v - :r.Kar

This truck has been designed and
built to meet the needs of the British
Airports Authority Fire Service.

It will cany a crew of two, 10,000
litres of water and 1,200 litres of flame
smothering foam at breakneck speed.

# J It has a cab mounted gun that
will douse a fire 230 feet away.
And a hydraulic ladder that will hoist a
fireman 30 feet above the ground.

Impressive stuff. Yet, save for some
routine road tests and training, sessions.

■ . i ■ — -W.

•T

= -fc
v.

* 1

KrtU.
-.t, jRicaas-

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this truckis rarely used.# ' J

A Red Elephant? V— x

Not at all. It is simply that the major
incidents where it would be needed are
thankfully few and far between.

Fuel spillages, road accidents, standby
calls to cater for faulty undercarriages.

These are the sort of emergencies we
tackle from day to day.

It is the job of om* File Service to
attend all the fires, emergencies and acci-
dents that occur within our airports.

No matter what form they take.

Last year the BAA Fire Service
received no fewer than 6,400 calls. Calls
that necessitate whole fleets of fire
appliances being available. It is the only >
way to provide adequate fire cover at our
airports, even though some equipment may 1
see even less action than the fire truck
shown here.

Our motor launches and life rafts for
example.

To date, they have never been used .
in earnest. Yet there they stand week in,
week out, fit, fuelled and ready for action
should an aircraft stray into some nearby
stretch of water.

Can we really justify the vast amount
of money we spend on fire fighting and
rescue equipment?

We believe so.

The passenger capacity of modem, :
wide bodied jets makes it more important ^
than ever to tackle an aircraft emergency
with the minimum of delay.

A saving of seconds can mean a
saving of lives. And lives, unlike .fire trucks,
are priceless.

: ~ , The British Aiiports Authority, a profitable public enterprise, owns and manages Heathrow, Gatwick, Stansted, Glasgow, Edinburgh, ftestwick and Aberdeen airports.

— ........ ' ~ — ’ * *“*■ ‘ “ l “

> *

UK NEWS - LABOUR

TUC asks health authority heads for help oyer pay

BY JOHN LLOYD, LABOUR EDITOR

THE TUC has written to the
chairpersons of all health
authorities, to ask them to “use
all the influence" they can to
persuade the Government to
improve its offer of pay rises
of 7.5 per cent to nurses and
6 per cent to other National
Health Service staff.

Mr Peter Jacques, secretary
of the TUC health services com-
mittee, said that the NHS
unions were asking Mr Pat
Lowry, chairman of the
Advisory. Conciliation and
Arbitration Service (Acas), to
mediate in the dispute. Sir
Lowry has already been asked
by Mr Norman Fowler, the
Social Services Secretary, to get
involved in the dispute — but
without a specific brief, and
without the machinery of Acas.

Mr Jacques accused the
Government of being “divisive
and provocative”, and said it
had broken off negotiations
despite the refusal of the health
service unions to accept the
revised offer.

He said £40m. of the further
£89. 9m made available by the
Government to improve its
original offer of 6 per cent to
nurses and 4.5 per cent to other
staff, will come out of existing
health authority budgets, thus
matting for ■ cuts in other

expenditure.

‘■The National Association of
Health Authorities estimates
that, as a consequence, all but
the most deprived regions will
suffer a real rat in their
resources for patient care this
year. The higbest-^owtti

THE NEW general secretary
of the National Union of
Public Employees has called
for hey workers in water,
electricity, gas supply, and
local authorities, to take
action in support of the
Health Service workers.

Mr Rodney Bkkerstaffe
said the meeting of general
secretaries of *U unions with
National Health Service mem-
berships on July 5, should
widen the action to those key

groups of workers.

Nupe has been pushing for
the widening of public sector
pay campaigns to involve
groups other than those
directly affected for two
years. '

The onions Involved include
the Transport and Genenl
Workers’ Union, the .General
and Municipal Workers’
Union, the Electrical and
Plumbing Trades Union and
the Confederation of Ship-

regions will lose the bulk of pay at the lower end of the
their, planned development pay scales, and S9p a' week to

money," be went on.

that of a senior nursing officer

Mr Jacques said that the at the higher end.
improved offer would add only “These revised offers do not
39p net to nursing auxiliaries’ provide a basis for further

building and Engineering

■ Unions, which includes the

- Amalgamated Union of Engfn-

■ eering Workers in its member-
ship. The July 5 meeting will
embrace almost every, major
union in the country, and a

. strike call from that meeting
would amount .to mobilise-

■ tiou fora general strike.

A number of senior union
leaders believe a map elec-
tion could .be called over the
series of deputes- under way.

negotiations within the estab-
lished .bargaining- machinery.
. . . The revised, offer is well
below settlements agreed 'for
the pol&ie, firemen, water
workers and workers in' the

nationalised energy .industries.

“In addition, most health
service workers are being
offered less than the average of
the private manufacturing in-
dustry settlement monitored by
the OBI."

• A three-day strike of all NHS
unions has been called for:
Monday, July 19, to Wednesday,
July 21.

• EJectridans involved in a
dispute which stopped the pub-,
lication of .The Times on Friday
and Saturday , have resumed
normal working. The Sunday
Times, which would have been
affected, was published normally
yesterday. • -

. The four electricians; whose
dismissal led to.ttieir colleagues
walking out, -have been re-
instated.

may not demand

BY PHILIP BASSETT, LABOUR CORRESPONIJEMY;

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LEFT-WINGERS . in the
■ National Union of Railwaymen
(NUR)- are likely, > as the
national rail strike gets under
way. to draw bade today, from a
motion- of no-confidence in. Mr
Sid Weighell.'' the.
general secretary. :

Even before the .unions
annual conference, which opens
in Plymouth today, is -due jto,
decide’ the future of the British*
pail and London undergrounds
: strikes, it will consider .a left* »
Inspired resolution from 4he-
NUR’s Brighton branch on.these ;
linn* demanding Mr WedghellV
removal front ’office.’ ;_ v _^

Left-wngers. ackiKwledg’e that

the political atapterioB of the.'
■relatively moderate annual gen-
eral meeting is such that- the :
Brighton resolution would la*:-
defeated if put This would
effectively turn, it into a vote ;
of confidence in Mr Weighell— 7
which is; far from what the left
\y an ts. ■" _ ^ *

For the left seems set to tririi
ttafe position into ..a 7, tactical.

strongly "against-Jhe- IeftY aUe-
Rations, which Suggest that< h£
has wttMield information and

correspondence;. refused special
meetings requested under rules,
dedined- to place items on - the
executive ' 'agenda and ^dis-
torted^ . . the: meaning : of

executive decisions or in gome
way frustrated their application.

Bank tenniz>a£s oppoh

BY OUR LABOUR EDTPOR ; .V

THE BANKXNG Ini^tuTanceraiid'
Finance Union is. to>

. oppose the spread of banking
fadBties— through ■ the toe of
terminals . jinked to , : a bank's
computer, to places otiiat ’than,
banks. - "

A report by Bifa on new. tech-
nology in banking, .recommends
opposition to such terminate,-
and says the union would caU
on other trade unions to -sup-
port its stand. It is also: opposed
to shop-workers . refilling; cash;
machines “to the detriment of
bank employees.” ; . '

The report sets oat- a' model
agreement on. new technology,
to preserve Jobs, gain joint
control of changes in- working
practices and expand service..

The union says that, -where

- sen employer reftKesito^igp sudi
an agreement, it will;" have. t»
assessr the. implications : of the
technology being totpnlhced by
the employer, and whether to
advise" its memberste. obstruct
its Intrbauctiari.” - . . fv^-
It also says it wiH: withdraw
sup^brf for Yotitta Opportunities
Programme - . schemes-: in - the
absence- .Of . ; new: . technology
agreehienits, unless it; cam be
dearly did wn by ' the . employer
tbat- th^ employment fof these
young people ' te rwt exriodfaig
them from becoadng-penndnffnt

. V: A X /-• “ ':.:'

Kfu is cottoned. that auto-
mated equipment sjftmld not be
used' ter juanttor bow qaxkiy
staff members work or their use

of telephones. .

Union leader ^ot1nYited ,

MR KEN GILL, general secret
taxy of the en gine ering white-
collar union AUEW^ Tass, if*?
said that he haid^no knpwledgtr
of a meeting of leedea’sotf all:
tour -sections of - the Aroti--
gamated Union of Erigiwsermg
Worfcegy— engmeemngr foundry.

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Bfr Geoff Ridmrdaon hK been
appointed regional executive,
dire ctor o f -NATIONAL ‘WEST-
MINSTER BANK'S south east
region, of which he 'has been
deputy regional director since
1978. He succeeds' Mr Pieter
Spencer who retires 00, June 30.
Mr Peter Tyley,. formerly area
director. Bedford area, has been
appointed deputy regional direc-
tor of NatWestV. south , east
region. He succeeds Mr Geeff-
Richardson who - becomes
regional executive director.

■ *

Mr Derek Palmar; chairman
and chief executive of Bass, and
Mr Nicholas Wills, a director of
The British Electric Traction
Company have been appointed Jo
the board of DRAYTON CON-
SOLIDATED TRUST, * company
managed by Drayton Montagu
Portfolio Management: -

MICROSOFT EUROPE, newly-
former subsidiary of Microsoft.
Corporation. TJ.SL, has appointed
Mr Chris Gare as director [o t;
European marketing, and will
initially be based in the UKi He
joins from Motorola.

■Mr George Walter, Mr John
Marshall and Mr Roy Oweut
formerly partners with Carr

Sehag and . Co. ’ -bare recently
joined KITCAT- AND A3TKEN
as associated - mambists of -the
Stock Exchange. ; '

Mr B. J. S. Jarite r has Joined
C. H. . INDUSTRIES' as. group
flnahcUQ ffireototi :. 4: .

' . Mr Vlteild’. Stan has bpen
appointed senior, director and
chief executive^ UK (mentions,
at the MEMORY GROUP: ;He
will be respoasUde lp the main
board for the three, group-com-
jpanies in the UK: Memory -Com-
puter Services, Memory Com:
' puters - (UK) : . and-.' : Memory
Computers (Nortiieni Ireland).
Sir Barry Green has been named
deputy chief executive— and has
ateo beat appointed .. man ag ing
director of Memory Computer
Services. New managing direc tor
of. Memory Computers (UK) is
^ Mb* Graham ' Barrett. Memory
Computers (NI> also; has a new
managing director. - He is.. Mr
Brin McCalHna. ,

• Mr Andrew Jones has been
'appointed, production director of
F. 1 CASTINGS: .: (ALTRIN-
CHAM). He was previously pro-
duction manager. . Mr- D. N.
Green ha^retired from the board
.of P. L Casting : Group. V ‘

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MANAGEMENT

EDITED Bt CHBISTOPHEB tO^E^Z

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Why Wedgwood wont Japanese

Christopher Loreaz on the pottery company’s success with quality circles and .others’ failures

•tHE dapper young Japanese
1 Executive from Toyota Auto
^iody. flashed yet another view-
'graph onto the screen. This one
was a sort of flowchart with a
legend at the top suggesting n»s
'company’s' employees are moti-

“vated by: ■

- - Pleasure of working,

pleasure of thinking, and
■- Pleasure of results.*’

- At first sight, he could hardly
•have chosen a less suitable
locale in which to let loose this
5 expression of the Japanese work
‘’ethic. At Wedgwood’s main pot-
tery factory on the edge of

•grijnv Stoke-on-Trent he was m
^rtie verv heartland of Britain s
; early industrial Revolution, the
^excesses of which have left such
"a. painful and longJasting
legacy of strained relations be-
r tween management and labour.
r Many British shopfloor workers
"would still maintain that the
.only “pleasure” generated by
■their “working and results” is
."that experienced by .their task-
: piasters — the management and
‘the shareholders.

V_ Far from being howled down
or ignored, however, he was
Glistened to in respectful silence
-by his audience, a group of
‘Wedgwood employees.

-.; They were not only playing
ithe polite and attentive host to
Shim and a dozen other visiting
-Japanese engineers. In their
‘own way, they accepted what
the was saying; replace his word
“pleasure" with “reward” or
.'‘security," and you have part
of the explanation why, with
the threat and example of re-
dundancy and short-time hang-
ing over their heads for the past
two years. Wedgwood’s labour
force is taking to a Japanese
motivational concept faster than
almost any other company in
Britain.

Not only does job satisfaction
seem to he improving, but also
performance; the two are by no
means always linked, whatever
the- “human relations” school
may say.

Part of the improvement in
individual performance may
have been 'stimulated by the
Damocles sword still hanging
over the head of Wedgwood’s
employees; recession and com-
petition have slashed .their
number by a third over- the past
three years to. "6,500,. and the
company is still suffering in the
marketplace.

But the introduction of
“quality circles ” has also defi-
nitely played a role, as every-
one, .from the chairman. Sir
Arthur Bryan, to sliphouse
labourer John McNaughton,
will tell you if you give them
half ai chance.

atmosphere ^between shopffffor
and management — top manage
meat, anyway. As in die many
other European and U.S. com-
panies which have rushed to
install quality circles over the
past two. years, some middle-
managers have been under-
standably reluctant to see their
authority “usurped," as they
see it

Dialogue

These are voluntary groups,
of eight or 'ten close colleagues
— “ natural wort groups,” in
other words— who are given
special training in the tech-
niques of identifying, analysing
and solving problems. It is this
tra inin g, plus the fact that the
members are led, not by a middle
manager but by one of their
peers or their supervisor /fore-
man, which sets quality circles
apart from all the project
groups and other forms of
joint management - shopfloor
groups which have been used
by companies for. years — often
to little effect.

Such resistance will be stif-
fened by the tendency of many
companies to see quality circles
as. .a. .cure-all for either their
quality problems or the short-
comings of their motivational
policies for both). The ten-
dency to jump on the quality
circle bandwagon just as a
gimmick, or without sufficient
thought, is already showing
signs of getting circles a bad
name in some quarters (per-
haps spheres is a- more apt
word).

As the “facilitator’* in charge
of promoting and co-ordinating
Wedgwood’s quality circle pro-
gramme, 59-year-old Dick
Fletcher -has expended consid-
erable effort, drawing on his
lifetime of experience in the
pottery industry, on ensuring-
that people “keep rigidly to the
Japanese rules,” as he puts it.

the' form, at practical improve-'
menfts in the workplace which
make the individual's wort
easier, more pleasant and/or
more productive.

With the quality circle -move-
ment. only a couple of yean old
in Europe— and to a large
degree in the U.S.— and with
senior management’s enthusiasm
still fresh, there are not yet.
many reports of circle proposals
falling foul of management
■apathy, at least at the top. But,-
if past management fashions are
anything to go by, it is bound to .
start happening soon, causing a
build-up of frustration on the
shop floor.

One of the tensest stages oT
Wedgwood’s quality circles pro-
gramme came . just before
Christmas, when Dick Fletcher
picked up mutterings on- the
shopfloor that management was
taking too long to do anything,
about some of the circles’ pro-
posals.

. Realising that “ one. of. the
killers is slow management res-
ponse," Fletcher went to his
boss, the. group production
director, who rapidly instigated
a priority system for dealing
with circles’ projects.

As Dick Fletcher says of
Wedgwood’s own experience,
“ This is the first time that

Until recently, Wedgwood it-
self suffered from the all-too-
_ common “Them and Us” pat-
'tern of British labour relations,
.‘'admits Dick Fletcher, who has
. been a senior executive with the.
company since 1970, when it
"look over the pottery enter-
.■prise of which he was manag-
ing director. The strains were
not as bad as in the motor
Industry; one would hardly ex-
jpect them to be in only a
'medium-sized company, and one
yhere many of the employees
'are craftspeople who take a
^ great pride in the quality of
• their work. But all the same,
: managers felt remote from the
‘.shop floor, and vice versa.

' “Now. there is much more
" fellow-feeling.” claims Fletcher.

operatives have been able to put
forward views that are not just
ideas, but facts.” At Wedgwood
and ‘ elsewhere, shopfloor
workers are at last becoming
able to hold a dialogue with
management as technical equals
over the detail of factory layout,
production systems, tool design,
and so forth.

Some of the 116 circles that
have been formed at Wedgwood
over the last 15 months have
created remarkable cost savings
for the hard-pressed company:
one has ■ produced an annual
$100,000 by improving the
efficiency of mould-making,
while another has saved
£300,000 a year by deaning-up
the “slip” (liquid day).

These provide for a formal-
ised process of analysing prob-
lems, solving them on paper
and then following-up with
action. Throughout the whole
exercise; in a manner which is
controlled carefully fay the
circle leader and the individual
■management . “facilitators,?
circles use brainstorming tech-
niques. scatter diagrams, pareto
charts and the tike, and end up
malting a presentation to senior
management on their results.

Suggestion

All this presents little
problem in Japan, where the
average- level of employees’
education is so much higher
than in Britain, but it requires
considerable training in com-
panies like Wedgwood, where
some circle members can do
little better than sign their
name.

Without this sort of discipline,
Wedgwood's weekly, one-hour
circle meetings (which are held
in company time, though mem-
bers often deride to take in-
dividual work home with them),
could all too easily degenerate
into a general discussion
around the table,” says Fletcher.

Other achievements are more
modest. But they all add up
to substantial extra efficiency,
not lo speak of the much better

• For the sceptics in any com-
pany to be won over to the sup-
port of the concept of quality
circles, one must of course be
able to demonstrate results, in

The Japanese who visited
Stoke last week were certainly
impressed with the .speed with
which action has been taken on
the circles’ proposals. > But, in
one sense — the sensitive one. of
financial reward — Wedgwood
has deviated slightly from the
Japanese quality circle model.

Like most Japanese com-
panies, and many in Europp and
the U.S., it has made no con-
nection between.' • its existing
individual suggestion scheme
and the- solutions put forward
by circles. But where . the
Implementation nf solutions in-
creases the output of employees
on piecework, it has allowed
them to have the benefit. .

Thus the sliphouae men- who
developed a new way of cutting
down the number of Hack
specks in the slip, saving the
company £300,000 a year, drew
no direct financial benefit On
the other hand, the 40 members
of the holloware casting depart-
ment are now enjoying a 25 per
cent increase in pay flunks to
a new design of workbench
which was done by the eight-
person circle, and which raised
.output by a quarterly allowing

new; working . practices’* 1 )". be- ,
introduced. {Holloware . ii a ■
general term J iqr jugs, pots and
so forth, asopposedto relatively
flat itkhs such -as plates, dishea '
and cups.) * . —

Dirt Fletcher is emphatic
that. such cases of -direct finan-
cial gain are- :the exception.
“Monetary reward is .not. lhe .
be-all and end-all What .people'
really want to do Is help.”

FletriHST-is also rather the
exception hi saying" that, .he
expects the quality . circle conh .
. cept to be applicable in only
limited fashion to white collar
workers, since few of them
fulfil the qualification of doing
similar wort. Various adminis-
trative sections, such as .sales
staff, planners and ■ even
accountants, Tare now .coming
■ into the circle programme, but
he says they will account fora
disproportionately small - per-
centage of - the. 2JW0 .or. so
Wedgwood employees who., are
expected to be circle members
by this time next year.

Such a total would represent
a doubling of the number, of ~
circles* Jn 12 months, an - in-
crease which many experts- con-
• sider too rapid. ..

There must also be some
danger that, in some areas of
management, though certainly.
not in Fletcher’s, Wedgwood’s
enthusiasm for quality circles
may drag it into the trap, of
using them as a cure-all. Sug-
gestions that the company’s
quality ' control - department
plans to use circles “ as a front
line on things,” to quote one
executive, suggest this may be
beginning to happen as far as
quality itself Is concerned.

' As for the motivational attrac-
tions of tbe circle concept, so
long as Wedgwood’s top manage-
ment does *not extend its
encouragement of employee con-
sultation and participation
across a much wider front than
circles, it runs the risk of leav-
ing them stranded m splendid
isolation, and of thereby raising
expectation on all sides to un-
realistic and frustrated heights.
If this happens, circles will slip
off the “ tightrope “on which
Dirt Fletcher rightly says they
always have to balance. •

A series of Financial Times
articles on product 'quality and
quality circles is available in
booklet -form under the title
"Learning from the Japanese " ■
From Publicity' Department,
Price £2 incl P &P. Payment to
be enclosed with order.

. ; 91^

DAVID HUTCHINS, the con-
sultant. who introduced
quality circles Into- -Wedg-
wood, is sceptical about some
of the other companies that
claim to have launched a
circles programme. “Many are
fictional.” he believes/ some
of them just- being joint
management/ labour market
teams masquerading under
tbe more fashionable “quality
elrcle” labeL

But he and one of Britain’s
other leading quality circle
consultants, Mike Robson' of
PA* International, agree that
upwards of 200 UK com-
panies do now have circles
worthy of tbe name. This is
more- than double the number
of a year ago, but even this
steep rate of take-off iff. less
dramatic than in the . United
States, where the number' is
thought ' to have increased
eight-fold to over 2,000 com-
panies in just 18 months.
Tbe Americans are, after all;
past masters at- latching onto
new management fashions.
Both the U.S. and Britain are
moving faster than continen-
tal Europe, though a growing
number of French, German
and Scandinavian companies,
in particular, have begun to
-Introduce quality circles.

Even, where circles are
what one might- call .legiti-
mate, both Hutchins r and
Bobsoa accept, some of the
widespread criticism that tbe
“bandwagon" effect has pro-
voked.-. -They are ' emphatic

that the failure ride /of
circles Is likely to be hlgh
when they are introduced" 5n
Isolation and not as^part -of '
broader policies im quality
and motivation.'

At a major International
conference he organised In
London late last week under
. the- tantalising ,_litle " “11 ->
Japan Can. . . . So Cap
Hutchins echoed again and ,
again what, one of. the Jap-
anese visitors had' empha-
sised ‘at Wedgwood: ; -that =
quality circles, are best set in
the context of . an everaR
system of “ttftaI qaality^Gon-
koL" '. :-x

Fundamental to such a
sytem, said Hutchins, is the
concept that everyone in the,
company, hot just the quality:
manager, is responsible for
-the quality of' the manufac-
turing process and the pro;
duct. This does not mean that-
management should abdicate
the control of quality to
circles; rather, their wexk-
sfaoold form port of a com-
pany-wide. quality control
system at all levels of man-
agement ‘office staff and shop-
floor. - - .

performance through external
stimafae < either jj^nalfies, on 1
> fiuancial. tocentlves). _ Tbasjs.
the- famous “ Theory - :

. “ intrinsic^ motivation made
- JOmousrM yeare ^o ^by mi;
/ American ‘academic, -Douglas .

• . McGregor.; • : V

Equally, PA’s Mike Robson
says the e tides should' form
part of an. overall manage-
meat philosophy based on the
principle 'that the most
effective way of motivating
employees, is to encourage
than to. use their hi titrate
creative abilities, rather flu
to cajole them into a better

. - OnboGt qtrility and moflva- '
tiunal ' groniids, .hr hotter

- worts, , quality circles should
. V be. dotted tato an oVerall

- ; framework. £Jqt enfly: that,

;• saysRo?>sdn,!Htiffley:^bimJd
V opeiutejlongatde; rather tiwm

; -instead fa- ether-toms of
employee- ■ ' organisation- and
' communication. *35tey don’t
titreatenor ' replace, unions;

- consultative -1. committees,

. : briefing ‘grovpsj enrich- -.
; V s Jnea^. or * qtudily bf'Wortteg
We'* pxograanme^’ , : he says.

/ “ They x«npiOTte^th«rtt”

■ WedgWbodsT)ftkJFWteher.

; who toXthe - process of ■

- settingnga national society

quality citdies, wfth- ap

' initial membe^Hp of . m
-• cwgpKde^ - -■'l^V pkrt ftc fe riy
.arathing afumf what Re calls
^ “ lristantised * drcJes. ■

’] I .Jiibt 'training is ctqdal

- to the jsuqiceSe of efccdes, he
-r^hdsfc'g»r' : is.' the fotmaiised

: \!natffre. iff . their Work. Jflttt so.

. fob, vohad^ry .nattae

thdrm«i*fert^ and the
projeds 'ffiey teted, . - The

r ^ i 'ttatttial v . ;Wort : . group ”

^ concept f c is . 'atio_ key/ he
emphasise*: , “Where . cam-
. panles fall Is when fhey dotft
Mude by the nries- \TaWng

- short cuts is fataLT-v

■ ; n . •'

THE WEEK IN THE COURTS

Single, tripartite arbitration

•WHENEVER tliere are disputes
•tinder two -related contracts,
.■both of which provide that such
disputes should be determined
■by arbitration, it is highly
'-desirable that there should be
'a single, tripartite arbitration
conducted before a single arbi-
trator.

: The general view among arbi-
:trators and others in commer-
•cial practice is. however, that
-‘any agreement devised to secure
tripartite arbitration can be
successful only if the third party
■4o the first arbitration expressly
consents to being joined in the
arbitration. The Court of
: Appeal last week* firmly indi-
cated its preference for the
avoidance of the multiplicity of
-arbitrations, -and exercised its
-own powers over arbitrators to
.order a single, tripartite arbi-
tration in the face of pro-
nounced opposition.

The common situation is the
dispute that arises oat of a
building contract. A contractor
engages sub-contractors nomi-
nated by the main contractor’s
employer. Things go wrong in
the course of the building opera-
tions. so that either the comple-
tion of the building is seriously
delayed or defects in the build-
ing works appear after the
building has become occupied
by the employer. The employer
blames the main contractors:
the latter turns round and
b Lames one or more of the sub-
contractors.

Ever since 1971 the RIBA
Standard Form of Building Con-
tract has contained an arbitra-
tion clause which provides that
if there is any dispute between
contiador and sub-contractor
which is substantially the same
as a matter in dispute between
the contractor and the em-

ployer, such dispute shall be
referred to an arbitrator
appointed or to be appointed
under the main contract The
knotty question is what happens .
if, by the time the sub-
contractor agrees to arbitrate
with his contractor, the arbitra-
tor under the main agreement
has not been appointed? Should
the courts stop the arbitrator
under the sub-contract continu-
ing to arbitrate if the main con-
tractor comes on the scene?

There has been a tendency in
the past to allow the separate
arbitrations go their own separ-
ate ways, and not to give over-
riding priority to the need for
avoiding multiplicity of pro-
ceedings. The view taken is that
the provision for joining of a
third party to an arbitration,
involving substantially similar
issues, is merely to facilitate
the resolution of the parties’
disputes and not to cut down
the individual party’s right to
bipartite arbitration under ids
own agreement

A second fact is that a sub-
contractor might feel at a dis-
advantage if the arbitrator in
the main arbitration found for
the main contractor, who would
undoubtedly be favoured in his
dispute with a sub-contractor.

The Eastern Bechtel case in
the Court of Appeal found the
ready solution to the doubts
about the .wisdom of tripartite
arbitrating. The case involved
contracts made in 1973 for the
erection of huge tanks for pro-
ducing liquefied gas from oil in
Abu Dhabi in the United Arab
Emirates. The main contractor's
contract for the whole wort;
and the rite erection subcon-
tract, both provided for arbitra-
tion in England and were gov-
erned by English law.

Cracks appeared - in one of

the tanks which had to be
repaired at enormous cost. On
the cost of repairs running into
many millions of pounds the
employers claimed against the
main contractors who claimed
in turn against the sub-contrac-
tors. The main issue in dispute
that was common to all three
parties was. what was the cause
of the cracks in the tanks? The
question before the courts was
whether there should be one
arbitrator for tbe two arbitrar
tions, or separate arbitrators.

Mr Justice Bingham had
decided that there should be
separate arbitrations, because
unless there was agreement
between all the parties, one
party might feel that an
adverse decision by the arbitra-
tor in the first arbitration might
affect his position in tbe second
arbitration. While tbe Judge
had acknowledged the undesir-
able consequences of inconsist-
ent findings by two on the same
issue by two different arbitra-
tors. he thought he could not
force the parties inio a tri-
partite arbitration without their
consent.

the argument that there were
great advantages, in terms of
time and money, if there were
a single arbitrator and a tri-
partite arbitration. No doubt
a single arbitrator would be
influenced in the second arbi-
tration by what had passed in
the first The risk of that occur-
ring was at least naniraai if
‘ the single arbitrator was -judi-
cially qualified and of high
calibre. In the Eastern Bechtel
case the arbitrator chosen in the
main contract was Sir John
Megaw, a former distinguished
Lord Justice of AppeaL If diffi-
culties arose, the single arbitra-
tor could always come to the
court and seek to be relieved
from conducting the second
arbitration. And if he clung on
to his remit, any party which
felt that it was being prejudiced
could likewise seek the court’s
assistance.

The Court of Appeal thought
differently. It held that there
were ample powers in the court
to appoint the same arbitrator
for both arbitrations. At an
early stage the single arbitra-
tor would have a pre-trial hear-
ing at which he would segre-
gate the various issues and
assign them, to the first and
subsequent arbitrations. The
issues in the main arbitration
would then first be resolved.
Where there were separate
points they would be dealt with
separately, but some issues
would effectively be resolved to
cover the two arbi (rations.

Arbitrations ore being en-
couraged by the law, as against
litigation in the courts. Arbitral
awards, moreover, are now not
to be set aside unless tbe arbi-
trator has clearly applied the
wrong legal test, or has readied
an utterly unreasonable decision
on the facts. But on the ques-
tion of the correct procedure
to be adopted in the appoint-
ment of arbitrators, and on the
conduct of arbitrations, the
courts are still keen to retain
their overall supervision.

•Abu Dhabi Gas Liquefaction
Company Ltd r. Eastern Bech-
tel Corpora t ion and another:
Eastern Bechtel Corpor at ion
and another v. Ishikacajima
Harima Hearn/ Industries Ltd.
Times Law Report, Jose 24
1982.

The court was impressed with

Justinian

RACING

BY DOMINIC WIGAN

FOLLOWING Assert’s pheno-
menal display at the Curragh
on Saturday where he gave
-owner Robert Sangster an un-
precedented hat-trick of the
three major European Derbys
provisional plans have been
made for both that colt and
Golden Fleece.

It now seems clear Sangster
is hopeful that Golden Fleece
can be switched to the Benson
and Hedges Gold Cup at York
before sealing what has been
already a remarkable season for
the unbeaten colt in the Arc,
leaving Assert to beat his elders
in the- King George before run-
ning In the St Leger.

Primula Boy sprang a welcome
surprise for his trainer, Walter
Bentley, when defying 9 st 7 lb
in last year’s Home Ales Gold
Tankard, but there seems little
likelihood of bis repeating the
feat in today’s running of the
Nottingham brewery' prize.
Since that Home Ales victory
Primula Boy’s fortunes have
plummeted and it is a sad re-
flection on the veteran’s decline
that he failed to be placed in
six appearances (his season.

Down the field last time out
at the end of Royal - Ascot’s
Wokingham Stakes -after show-
ing speed in the first half of
the race, Bentley's Sal lus geld-
ing appears to have virtually no
chance of upsetting- the second
in that event, Camirite.

Campsite, the . length con-
queror' of Ka Hired in New-
market’s Bretby Handicap on

his seasonal debut went on to
land another valuable handicap
at Doncaster before his Ascot
run by. giving Amorous 12 lb
and a "two-length beating in the
Priory Place. Handicap. The
11 lengths runner-up to BatUe
Hymn, to whom he was trying
to concede 12 lbs. in the 24-
runner Wokingham. Camisile
'should win again provided that
he can again beat Gambler's
Dream.

It was a memorable afternoon
for the ' young Newmarket
trainer Bill O’Gorman on the
corresponding day a year ago.
with Swynfords Passion’s 25-1
Nottingham success being fol-
lowed by a 16-1 victory for
Tamdown Flyer at Windsor. It
b quite possible that O’Gorman
will again have plenty to cele-
brate. at the close of. racing
today.

In addition to saddling Cami-
site at Nottingham, he has On
Stage among the runners for
Windsor’s Pall MaU Stakes.
Judged on his initial effort at
Redcar, this bay colt by Comedy
Star out of Last Case should
have few problems. At today’s
Hamilton meeting. Feeling
Great should be chased home
by Tbirtle in the Scottish. Rifles
Maiden Stakes.

NOTTINGHAM

2.30— -Saxon 'Farm

4.00— Camirite

HAMILTON . .

2.15 — Slmale's Love

3J 5— Torsion Prince

4.45— Feeling Great**

5.15— -Fascadale
WINDSOR

6.45— Mysotte

8.05— On Stage***

- &35— Tender Trader -

9.05— Bold Print*

■sk:

BBC 1

TELEVISION

LONDON

1055 am Cricket: Second Test.
England v India from Old Traf-
tford. L05 News After Noon. L35
Pigeon Street L50 Wimbledon
Lavra Tennis Championships.
Ladies’ singles quarter-finals.
3.38 Regional News for England
(except London). 3.40 Play
School. 4JK5 Wimbledon (further
coverage).

Tonight’s Choice

The highlight for me. tonight is The Boy Friend (BBC-2 at
7.35). The parts~Ken Russell's direction; Twiggy’s screed- debut*
Sandy Wilson’s songs; Busby Berkeley dance parodies— may be
better fhan the' sum, and the innocence of the original is quite
lost, but the camp charm which peeped through on its release,
in 1971 might be rampant fay now. . . .... _ ..

5.40 News.

6.00 Regional News Magazines.
6J.7 Nationwide.

In contrast World of Action (times depend on the World
Cup transmission from Spain) investigates why Nissan’s planned
mammoth investment In tbe UK has not materialised. Are British
car manufacturers putting pressure on the Government to halt
the development? A veil of secrecy may be lifted, there is talk
of’ access to confidential documents.

6^5 Wimbledon: Highlights
and results of to-day’s
play.

7J0 Triangle.

7JJ5 World Cup Grandstand
from Barcelona.

The . schedules are all over the place this week because of
the World Cup, but ITV is plugging any gaps with its “ Best Of.
British” repeats. Tonight Paula Wilcox and the late Richard
Beckinsale are once again The Lovers. BBC-2 stays oh the foot-
ball sidelines and concludes its search ibr the Mfrgmrq of the
Tear. It is no secret that the winner is Strte-on-Trent

ANTONY THOftNCROFT

&55 News.

1020 The Monday Film: “ Fire-
power” starring Sophia
Loren and James Coburn.

BBC 2

If the evening -World Cap
match from Barcelona Is dropped
In favour of the afternoon match
from Madrid, programmes will
be subject to alternation. ■

10.30-10.55 am Play School.

1.35 pm Cricket and Wimble-
don.

5.05 Newsround. '

5.10 Blue Peter.

5.35 Cricket and Wimbledon.
7.30 News -Summary. - -

7.35 “The Boy Frieild"

9.45 Museum of. the- Year... ..
10.10 Wimbledon highlights.
18.55 Newssight
11.40 Crirtet: -• Second . Test
highlights.

- - 9.39 am- Sdbodle programmes.
12.00 CocklesheIl B^:.;ltlb;"pm
Rainbow. 12.30 Supex^rvers. LOO
News: with Peter-- SSssom^plus
’ FT- Index. L28 3fcan^r'NSWs
with ; ' Robin- •• HbuSttuu.: ;• L3i&
“ Juanibo " ,iStariring .Doris ; Day,
Stephen : Bdyd. . i; xnd^. : Janmy
; Dijrante. 3-45 WoritjCun ’Sfc .i
6.15 News. . : £ ;•

6-30 Thantes 7 ”.'- N.iws- with
Andrew GardOer . and Rita
; ‘ -Carter. ‘

7jW Coronation Street- '
riir “Gold"

, ■ Moore . and

York; . - '

-9.30 Best :af .Britiffhr
■ • Lovers." • • • . . Y
IOlOO News. \

. 10.30 World In Action. .
tILOO World Cup . ’82 Highlights.
: 1L40 Barney Miller.; -■ . .

12.10 am dose: Sit ’ Up 'arid
Liston with- • . Tim
■ Beaumont

'The

Because of World Cup coverage^
programmes will be subject to

■ -alteration.' . . .

t Indicates programme in
■ blade and white' .

All IRA Regions as London
except at the following times:

CHANNEL.

ANGLIA

1.20 pm Anglia News. MO About
Anglia, 11.40 Ritniw 12-10 am
Four into Ona.

1.20 pm Chanosf Lvnchtimt Nam*,
Wtaia on. Whore and weather.
6.30 Channel Report. 1028 Cbonmrt
Lata Nows. 1 11.40 AujoufO ‘hui on
Franco. 11.4S The Incredible Hulk.
1235 Now i and weather In Francb.

ttxctpc 12.00-12.10 pm Daew Mem Yrt
Dwad. 6.30 Y Dydd. 6.0-7.00 Rupert
WafM.

Coost.- ' 7.3U - ■*’ Dsatffa!l/ r • starring
.Michael. Caine and Erio Portman.Vlf.40
Mennix, 7ZJ5 am Company.

SCOTTISH

GRAMPIAN

• ISO pm Scottish News. 8 .30 Seot-
t«nd Today «"d Crtnwduk. 11.40 Late '
.Can. HAS Naro Wolto.

TYNE TEES

BORDER -

1.20 pin Border News. 6.30 Look-
•rcund Monday. 6.46 Farmer's World.
11.40 Border News Summary.

9.26 am First Thing. 120 pm North
Newc. 6.30 North Tompht. 11.40 Top
Rink Fight's of tho 70's — (Ali v.

TSW

BJS mn The Good Word. 9J5 Worth
East Nowti . 130 pm North' East NaWa
'and Look* round. &30 Northnm. Ute-
1030 North East New*, - TT.00 Old
Man's. Story. 12.00 Yfts. to God. :

newG. e.au norm lomqnr
Rink Fight's of tho 70's — (All
Norton). 1240 am North Headline*.

GRANADA

CENTRAL

■1-20 pm Granada Reports. * 630
Granada Reports.* 1140 Danger UXB. ■

12JZ7 pm Gus Honeybun'a Magic
Birthdays. 1.20 pm TSW News Head-
imas. 8J0 Today South West. 10J2
TSW Lata Maws and Weather. 1140 pm
Paatenpt. 1145 The Incredible Hoik.
12J35 m Sooth Wen Wwfiw and
Shipping Forecast.

ULSTER

13D pm . Lunchtime. . ':.3 43 Wbrteh
Maws. 630 Good Evening Ulster. 1039
Ufaxar Wealhor. 1140 Ntvfs at Bed-
time. .

130 pm Central Nawa: 630 Central
New*. 1140 Central New*. 11.46
Barney Millar. 12.16 am Coma . Close
presented by. Stewart White. -.

HTV

TVS

1.20 pm HTV Nawa. 630 HTV Naws.
1036 HTV Nawa. 11.40 Video Sounds.
HTV Cymni/Walas. As HTV. West

130 pm TVS New*. 130 n Devil at
Four o'clock." aatrnng Spencer. Tracy
and Frank Sinatra. 630 Coast to

YORKSHIRE

130 pm Calendar Newa- . 63CJ Ce WtV :
dar (Emtey Moor and Betanom adt-

unna).: TMO.Uta ffijW DrWMv ' •*

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RADIO 1

(S) Stereo broadcast (whan . broedewt
on VHF) ...

5.00 am Aa Radio 2. 730 Mika Naad.
9.00 Simon Bates on tha Radio 1 Road-
show. 1130 Diva Lea TNhni. 2.00 pm
Raul Bum on. 430 Peter Pfawell. 7.00
Stayin’ Alive with Andy Paablea. 6.00
Pavid. Jansen. 10.00*12.00 .John Peal

RADIO

Tho bat of Jazz (S). 930 Sports

Desk. 10.00 Funny You Should Ask.
10.30 Star Sound .with Nick Jackson.
11.00 Brian Matthew with Round Mid-

IS ^

Radies 1 and 2 — 530 am With
Radio 2. . 2.00 pm Ed Swwsit plus
Form Favourites (S). 4,00 Colin

Barry (S). 646 Naws. Span. 6.00

John Dunn (SI. 7.00 With Radio ,2.
1&00 With Radio I. 12.00*6.00 am With
Radio' 2T

night (dterao from midnight). . 130 am
- -S.00 Yi

Encore (S) ■ . 2JM-S.00 Ydir ami ' tha
Night and the Uuaic (S).

RADIO 3

RADIO 2

S.00 am Ray Moore (S). 730 Terry,
Wogan (S). 1030 Jimmy Young ,(S).
12.00 Gloria Honnllord (S). 230

Wimbledon 82. -7.00 John Dunn fS)
(conpAued from VHF), 9JB Folk on 2
(S), 9.00 Huratdjray, Lyttlaton with

63S am Weather: 7.00 News. ,7.06
■Morning Concert (S). ftOO Newi. 836
Morning Concert {continued}. 9X8
News, . '9-06 This Week's Campoaar:
Dali via (S). 10.00 BBC Scottish Sym-
phony Orchestra' (S). . 10-55 fielma

String qudmt (S). * * 11.K Debuaty
piano recital (S). 12.00 Mozart- con-
cert (Austrian. ' Radio recording from
Th» Sod burp Mozart weak) (SJ-.1X0
pm Nawa, 3XG BBC. LoncbtiiM. Concert

(S). 2X0 Matinee Musical* (S). 3X0
Ptoter (S). 435 Nows. 5X0

MMnly ter Pleasure (S>. 635 French
Mk i IS). 7X0 The Ultimate
AstonEsfaar (S). 746 " i( Monde DfUa
Lena ' comic open in Three *ct» _br
toydfl, Aer l <S? autg in (tatianj. .83G
SSk. from .South Kensington by Colin
McUran (5). 9.00 Monde Delia
S n »- *Cte 2 and 3 (5). 1045 Jazz
In . Britain Thiurhq the Don Aoodali
Quarter (S>. -11.1S-TM8 News. -
. Mvdiun» N Wava as VHF except-. IBA
«oX3S pro Cricktn. Second Teat—
EngUnd v, inois. .

RADIO 4

6.00 am Keure Briefing ' 6.10 Farm-
ifHi ' Week. 6.25 . Shipping - Forecaaz.
630 Today. *3B The Weak orLdJ ^da

John BxtoA with . reeordmgsvfrtep Ai
BBC Setlntf Archive*. 8X7 -Wee***'
ttavtk 6X0 New»» ttiJS Start theJweak
wrft Richard Bekar^lS). -lOXO NaW*. ,
Money Box. 1030 Da Hy -Service.
Momfng.&biY'r 1i:00:lteSln. TTXO
. pwn .Your. Way. visits UftapdoI.'Smit-. ■
Mmd. W-W Poetry «eaML>12rikN*i«.
T2-02.W1 T««r and Voii*;-. -tUB. The.
Bay Job. 1235 Weatbdr. . BWat» -ptv^

. itetetei. UBOXka-Wtkiaei 6ml .

140. TH Attire. SMppiijtj Tare- -
k?* 0 V&. Wom^sr Hair-. ;

-SxO ftewi. ‘Atetarmrir^^Rreatra -

152 - J^ 30 ol . --Art •-

6 £? m NawrAfeter-.e-
S30 Sbjpo,ffjr ftrecest. . W Weather -
' progremme.-naws. : fcflO H dWe r : IndOd- : ■
- mg Fitnmcn] Report ■ BXOlThdSKetf* -
Quiz x &)- , 7 /do . ;

. wm!i«r? : i$j£i ::

Science How , tt.Oo.a -Book'S::
fl««ree. 'U. 1 iff to* Hatg&t.Wfi®:.

r :

T V £.

Rolling Stones

Antony Thoritcroft

thom? 10 ^- t ^ubt* em ift!t , '*^iS » Cti h n and d^PPearlng for
Rolling Stones were * ■* So of costu ® e *nio a

greatest rock and roll band^n vS” **?? or a woolly sweater. I
the world - Z S “ You realise al the end that you

the arts

Architecture

Colin Amery

Sutton Place

pjjj.

: >*

--M

,r «!i-72\

,r /:** a»»£

.r* B *

■ ni, „ ^

- " V «h

' 5 » fcfj?

~»«iJ

- 'Jf* ! ( «6

* ***

r "

,p »KN.

■ : - njTifflji

•■’ •• r M’J?

SBfift

■ ■ ’ii' fei

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• .. ,,i -

the world" were riiuJiiT? 1. realise at me end that you XX— 1 __ T _

^ ^ — for love

233 .2SJS a-; “5 £*? J5 or money .

^^rSBT'W Place, », Guildford

Simon and Garfunkel a ^5ek 5S2 on^Sir “SS ta S" 11 **. !• one of the two

SS2JS Inrkia? Wyman %JclLtESfcS JS*tL ^ ^Portant English houses

SS £m* out^Ef S e *?* ^ as 15208 - With Hampton

audience. The staee w « J~? 2Si ,lu, f s: a “d **• keyboards Court and Layer Maraey it is enc-
ircled outwards, with lone e«" 5J!?~ ln r J f a ^ cu j r ftr - the saxo- of the few places where there

^ enabling Ja^er. Sd 2t SicTafter ^h^ round 0U } te extant > b ** 9^ty Renais-
rest to race into the crowd A and 2JL WS, s ? nce t«racotta decoration. On
of garish St on £ SS^&uS djstaictive the entrance front there, is a

™ a *? s — ffl st cars and mittars— I fSISrf hLh. • central pane! of naked amorlni

«t the right good time mJ£T for roSL?' fL? HTent . hkM ® 11131 would *» remarkable to see

^“o/ValS '£2!*-El V m*i ^ yMdisara ^toseein

rSlf**? ? f a11, a «iant ’serin finai^^hly wL*oE”t ^ ^cent years the house has
r® la y® d close up of the action line n£E Tdmb- been best known as the home of

*? far caches of the hcS SEE «££?<, of that rather retiring Croesus, the

stadimn. Tne ^od TOmBS ¥*?* Paul G «ty. After his

th^V "yp®* m °ney buys hi^sdfj i^SSL^SS? rwrap ! dest1 ?, lt was bought by an
St ,°r“ e , s exuberance, « SrobE £ M a good equa,,y shv and almost as rich

25?;, Mlck -Tagfier's mesmeric An, ^ riran ' Mr Stanley J. Seeger -

Sn5 n 0ver ,he lwo hour Plus n!Fa i^ e of Texas - ^ house and the

show. Dressed like a Florentine ^ *he last estate have become part of the

Punk of around 14€ 0 in red ’and at .. 4 5l v S 5 ' * ntf ' asesets of his Anglo-Texan oonE

3BvL S ^rt d h0se he nauaK b « §tones S mw £5; ^E«S? lln * and ^Though he had- a

r Z ears hke a naushtv version tro« u ■ ay “ dVe mov cd on lease on the house Mr Sewer

woofhet ard Ahe, ' ?db ™" SS^MjreSJr'^- m to '* e ™ “i^STK

Statist! scaniI>ers around the rather thsmth^«? s th ^L aci J and< ' d over the lease to the
a hyperactive toddler,' thin" inf h «. ^ pf>rtant Sutton Place Heritage Trust,

throwing water over the crowd levpf rKfcP^f WQr4d * hut at any . This is a new and rather interest-
ft 1 "* P«^s ups and kick jumps’ ma£SJ* X of the best ing way of maintaini^ ?££i
bullying the other Stones Inm bw lhat money can -it appears to offer the bcsTof

all possible worlds. The hosne

The Ben Nicholson sculptural wall, the artist’s last commission, and his only
large scale work, clad in carrara marble

Artists and Admirers/Riverside

Michael Coveney

-LJS?- Britl5h ' tu 1 * 6 , 5s s J owly and regularly reminded of her
catching up with the founder of impoverished scams by her
modern Russian drama. Ales- garrulous mother (Carmel
ander Ostrovsky. Following the McSharrv). The test— here
triumphant RSC revival of TJie translated by Hanif Kureishi and
Forest, the Riverside Studios the circumstances of the benefit
present as their first home- and Lhe haggling among the
grown show for two years suitors for favourable condi-
Ostrovsky’s ricMy panoramic the director, David Leveaux—
comedy that was premiered, late offers fascinating, glancing in-
in the playwright's life, at the sight into a theatre world
Maly Theatre in 1882. Ostrovsky was quietlv but re-

ft may be axiomatic tD say spectfully burying; not onlv in
that Chekhov learned a lot from tions of patronage, but also in
Ostrovsky, but this play cer- the figure of a drunk old trage-
t airily justifies the cliche. The dian (Graham Lines) who flits
central love story of the penni- with red-nosed grandiloquence
less, idealistic tutor and an through the action,
ambitious provincial actress The hoy Negina loves is up
was certainly echoed in The in the gallery, but she waves
Cfierry Orchard 22 years later, goodbye to him by boarding the
But there is a more brusquely train to 'Moscow with a gent
satirical purpose about the way from the front stalls. Michael
Ostrovsky assembles a large Wade plays the scene superbly,
selection of characters in order as she does an earlier one in
to destroy them our of their which she shares with her
own mouths, a more pervasively mother a couple of heart-wrench-
robust sense of humour and far ing love letters,
lets heart. But the production is a

Negina the actress is the distinctly second-eleven affair,
toast of a small town, and badly staged in the manner of
various worthies troop on to Peter Gill but without any of
seek her favours on the eve of that director's casting flair and
her benefit performance. There emotional resonance. I really do
is a pathetic, sentimentalist, think that the Riverside school
Narokov (Clyde PoHitt); a of theatre spawned during Gill's
suavely ridiculous Prince (Denis tenure of the building should
Holmes): and a materialistic find its own way of doing things,
realist, Ivan (David Belcher i. not set out to emulate or, as
All are subjected to the jocular in this case, tip the cap to a
criticism of the withering revered mentor. This piece
ironist, Grigory (Tony Rohr), requires a much stronger

essentially private but ® f J®® 1011 kas . 80 “ u <* earth seems an unnatural clement and quota of leathern iues on the ,ranisT ' Grigory (Tony Rohr), requires a much stronger

^ot specific exhibitions JJJSJEJ* lak f folly very much at odds with the idea refectorv table Mainal strined a ° d the thumping disapproval colouring than it receives. But

i:lf V ^ tsdunngthe year by K U ^„“ d c water workmg of serenity and natural order corduroi covereth? IhlSless of Trofimov-like tutor, the play was well worth doing
Tw! n 5? en iJ* The u Herit *E* T j Ca,e the Nic!l0,s °n conveys. On the sofas and pots of bamboo ^tand Meluso ' t ’ (Nick Dunning). and remains, despite the pro-

Trust has been so handsomely !!LHj e -l m * ei ? a, U 11 & 1S ha T d t0 eas * of the house is a new about as though this was the Negina herself is buffeted duction's shortcoming, well

endowed that Sutton Place is P? S P i? 1 J5 at “' h S* a r _° r "oiled garden that is alive with fover of an office buUdinc The around by the ludicrous menfolk worth seeing-

now staffed and run with a very part ° f . > L Sir the sound of trickling water, architects ' Sir HuS f£ s 4n

un-English degree of high com- Geo 5 reys ldeas behU5d his Arhours of honevsuckie Conder and Partner

iort and international luxe a« Ea_ r den are part of his whole jasmine, and clematis «nii «*>«,£ hPi!- d -_ a .[ t ^® rS ' ci ¥ m tl ? a . t YpnaVlc/Rt Rurtc

A x,., and events during the year by ““““W an d „ water working of serenity and natural order cordurov mwr w h X«

_Midsummer Night’s Dr eam g" ffft . ^JSSS SvSS* ' JK t SS£ wi-fi

SSi ^!ff-i hat j Sunon - ? lacc 18 lako P onh^'^urt' nF “' I,# c° r 'I a,led pardcn 11,31 is alive with foyer of an office budding The

pAealiHa now staffed and run with a very Part of il Sir the sound of trickling water architects ~ Sir w,,<,y, f',....

Rosalind Came un-English degree of high com- Geo j rr ey s ideas behind his Arhours of honevsuckie. Conder and PartneI? h r^aSE S f^?^ ,

Thic i *u and international luxe. As Slf^hSEi part . of hi ^ whole jasmine, and clematis will shield thev have nothing io do with

A 155 «rn-ully when „ «J» “d “ « &££ ^ndS E pa d ths bathS

colleagues’ responses, all ihS EE^hl? crankinfi - How - encouraged? and create, what he calls, “the One If the aims of the newlv- have stow ^dlv S tthL

major productions stumble oJer Sn ori Jna^S^hv^ ‘,? t0 , Desp ‘ te lilB ver ? peculiar ?S e n *’ established Sutton Place Heri- of the gns* housn o? England

the same problem. Every sdamL^mi atmosphere that now reigns in KE II ,k ^ens created dur- taae Trust is “to nreserve the had its interior vlnluishS a?

.m.t.urlaow, the dUBcnl^Z the hop* the r«l ftf* «• P«W •tnnph.K ud eh.rKter of Z

Xenakis/St. Barts

Dominic Gill

the sa
amateur

a Victorian setrin

d ^j hm®” ■

ably diminished. Mr Dews is a internre atinn 2Tw?S , i t0 his ?J dinary °PPq«unity to see thi

sa sr h* S^smsws

theatre Company f A TZ ° PraCti "’ *“ th *

The drawngs of Aubrev rSS a touch : :

Beardsley become the-inswr/ h! a ! XRJ £ - snecessftri .
tion for the spirits, but IhS St^SSjS hoi ’

SS mS SSVC tr ^ ti1 J he distinguished prac-
Beardsley is his flambo^ce. S S?°J2f r r° f ^theatre to rome

his burlesque, that touch of and the siimum??^ drear ” J?, ° v .? r Don Giovanni is

bitterness. These palpably i mroleii _ surriMmdjn S nocturnal M^Jiael Gehot, whose new pro-

earthly eprites ere eh" 3^ ‘TTm often « . SSS" .

statutory Guildford 504455.

Don Giovanni/Theatr Clwvd. Mold

Max Lop pert

i Af Hion t 1 haw long complained that Protheroe — whose accurate but
n imt^ne the Franco-Creek composer genteel beat did not succeed in
in imagina- jann^ Xenakis is known tn coaxing at the start quite the
hmchura BritKh concert audiences only right degree of pungency from
ace arrivS by a very incomplete and arbi- .lnaktorio for eight instru-
•t rnirmrwrf tra, 7 selection of works which ments. but who was roused by
alains whv ? scludes t be majority of his mid-evening to urge a worthy
be allowed ,m P°^ ant . compositions of the account of Pa(impses( (scene-
a he - a P® 81 dcoade. In the early 19 <0s changes and alarm-bells for 11

are very ESj 0 5wS [ S fc 11 ? vil“ d } instruments) and a sturdy

wledceable and . ber Bach Feaival finale of the better-known

agedythat )^ ed 10 keepus abreast of most Eonta for piano and brass. A
i try houses ?L *2" s , 1 | les L?? rk * B ^ 1 remarkable performance of the *

« ES5S2 is . sBsrAna :

tawX" ffTnVVn'ffr-SHS fpuSf i S x"nak, S s .

trf ld h° rd * denied us performances any- e ?® DC |j d l)ri ^ bt as a la ^ ea ^
telephone where else of the greater part “ ei ? be I s of

of his subsequent orchestral and 10

instrumental output: alone

amon? the major nations of ^ck, indeed that this Dftwly-
Europe. Britahi has yet to hear! revived St Barts festive should
for example. Eridanos (1973). coincide exactly with a train

Europe. Britain has yet to hear! St Barts festive should

for example. Eridonos (1973). coincide exactly with a tram
CendriSes (1973). Erik then stnke: but each event so far
(1974), Emprcmics (1975). nas been worth every minute
Epei (1976). Jonchaics (1977), of *« wait, and the walk.

Ais (1981) and Nekuia (1981).

In the <sse of Epci (the only .

some .phrases of impressive u Wor S of l . thal by Elsdon, Fairweather

Ottavio (Richard Morton) and {?! e ? t s ”S! m “ *« pasl tanse: m tnbute tO

tockie )™M?ldTn - e ^erprisin 3 idea to Louis Armstrong

ra^So^t^lhel™ 0 ^ «*•«*? aw^iTa BSttofi: Trumpeter Alex Welsh has

Srallo°o% cSS % TT* vZr\r^r h lJ a Fridav^n abf" t^ tike paAlnThL^ea?!

honour of the composers ’ 60th Armstrong Anniversary

sssririu;"S JTSSS ‘TT-not often ' fM , .s »- -ssass ^^^riaraag ~-ttr«s -i

!W. *ffirSiJ£XS-

Elsdon, Fairweather
in tribute to
Louis Armstrong

tals and mortals, and Jim

effort, though he too gets lost
in the language. P#»fp.r Ppott

Findley makes a fleet-footed rcicI r CdT5

Action commences in a wed- winner

ding marquee which lakes

work’s generic

problem before, but in the WXO PnriianU was here ^--ratter
<dl prizes for foolish- litUe more than a nice English able to last
, „ . baritone intermittently adrift in vacuousm*^

and its sound-world could have

»““»■ «« J! *— ■ •- W little more tten a nice EnjrtSh 3S1!ll TtaJSSLfe 2 =33 o"th„ P>«e n( w=>ah on j™,

strugglh^g to^et'ouL^ stagmg n ” s> u ^ baritone intermittently adrift in v^iolLS I <"«?<««*: 3 mcrcilei climate, SL^JE” . p !? y f *S*J*

niggUng to get out. ~ It would be teihous to com- a graTt ro^he iinJ ZTnZ ^ e 0USDess of the — ^ Z Uy
Mr beliot has supphed a new pile here a complete catalogue dom smooth, rhythm was uncer- exchanges

dinlr lrip ^h;^ , Winner ' English translation (and him- —cento in the first finale, novan- tain, and despite the Charles I

^ self celebrates its virtues in a t«rw in the second (where the moustache and robes (desSSe-

area Thi! pS? 161 Pe J er ^19 booklet essay Don goes to hell via a depar- Ralph Koltai has placed^thj

area. Inis is most effective. Pears Prize, a comneritinn fnr m»tinr« mg . ..... K .. c

have been conceived by no other .f, n ^ lace Welsh on trumpet
composer: a merciless climate, be . ^o players, both of

brilliantlv lit, of an^rv ^ hom haV u e loas m*°™-
exchauges, tempered by SC ^

rustles and murmurs, and argu-

men Ls rippling with fierce h nl p k>h° v. V ?’ ni;I1 S v ^ lU
signals fierce imirnnK Tt i« a be fo?»P*eted by Roy Lrunmins
S \^5£5%J t ££ 'irombonej.AlGay (sa.es and

A Moore for 50 p VfivSSUS

Works by Henry Moore. Sir dense and brilliant piece, only ciar inets" & * Fred G Hun r^niano?

^ Jim Douglas ' (guitar/ 1,1 Pete

HNAM 3 ALTIME 5

BRACKEN HOUSE: CANNON STREET, LONDON EC4P 4BY
Telegrams; Rnantfmo, London PS4.Te}ex: 8954871
Telephone: 01-2488000 '

Monday June 28 1982

The fallout
from Mr Haig

•• THE RESIGNATION of Mr
‘ Alexander Haig and his replace*
meat by Mr George Shultz as
TU.S. Secretary of State is not,
: ih itself, a cause for European
'^concern. Indeed there are rea-
sserts to believe that Mr Shultz
■„ could be a rather better Cabinet
officer than his predecessor.

.. Mr Haig was an Atlamtidst
. He knew Europe well from bis
i.days as Supreme Commander at
*-Nata. He understood European
politics and European sensitivi-
ties. Europeans in turn had
come to appreciate him as some-
‘ one who would try to ensure
that their interest would not be
' entirely overlooked in Was bin g-
: ton.

Yet there were signs, especi-
ally of late, that he was not
completely at home with Presi-
dent Reagan's machinery of
Government He did not fit in
with the Californians who tend
to view America and the world
from a west coast rather than

- a an east coast perspective: the

£ Atlanticist wing in successive

" U.S. governments has been tra-
ditionally east coast. There was
also the odd sign of vanity, even
of pique, if be was not getting
his way. In terms of foreign
policy the Reagan Administra-
tion was not working smoothly:
Mr Haig had too many quarrels
— :with Mrs Jeane Kirkpatrick,
the U.S. Ambassador to the UN,
with Mr Caspar Weinberger, the
Defence Secretary, and with the
White House. He had come to
be seen as constantly under
attack from somewhere. Resig-
nation had been talked of many
times before it became a reality

Team man

From the European point of
view. Mr Shultz has many of Mr
Haig’s assets. He, too, is an
Atlanticist and knows Europe
well. He belongs to the east
coast which is basically the
medium through which Europe
understands the U.S.. and vice
versa..

In some respects Mr Shultz
may even have the edge. He is
probably more of a team man
than the prima donna that Mr
Haig sometimes threatened to

_ be. .As a former Secretary to

- the Treasury, he is aware of
the importance of economics in
foreign policy. He may even
please the Europeans in being
rather more sympathetic than
Mr Haig to the Arab world: Mr
Haig was remarkably, even
dangerously, pro-Israel, espe-
cially during the latest excesses
in the Lebanon.

It may also be reassuring to
Europeans that the rest of the
top officers at the State Depart-
ment remain unchanged. Mr
Laurence Eagleburger and Mr
Walter Stoessel. who hold the
offices just under the Secretary
of State,- are thoroughly profes-
sional diplomats with a know-
ledge of Europe. There is no
evidence so far that the role of
the State Department in U.S.
foreign policy-making is being
diminished.

Yet whatever may be said

either in sympathy for Mr Haig
or in congratulations to Mr
Shultz, it cannot easily be
argued that European- American
retortions have been going all
that well, To take only a' few
broad examples: UJS. and West
Europeans views on . the
diplomacy needed in the Middle
East have increasingly
diverged. There has been the
r unnin g bottle over defence
expenditure, with the Ameri-
cans tending to believe that the
Europeans are not pulling their
weight. On the economic side
there is European resentment
at high American interest rates
The latest specific case of
aggravation is the American
ban on the supply of UJ5.
equipment, including the (equip-
ment of U.S. subsidiaries in
Europe and of European com-
panies operating under licence
from American concerns, to the
Soviet gas pipeline, a project
which the Europeans are
pledged to support.

Main damage

The pipeline is perhaps the
most vivid illustration of what
has gone wrong. The project
will almost certainly go ahead
and the main damage that has
been done is not to the Soviet
economy, but to the U.S.-
European relations.

While wishing the new Secre-
tary of State well and hoping
that his appointment will make
for a more harmonious func-
tioning of the U.S. administra-
tion. we would urge that two
considerations be borne - in
mind. The first is that the pre-
servation of the Atlantic alli-
ance. if not quite an end in
itself, should be at least a top
priority to both Americans and
Europeans. The second is that
economic policy can no longer
be isolated from foreign policy.
Some of the greatest strains in
U.S.-European relations have
come in the economic field, and
it is there that consultation Is
most needed.

Complex task

For a superpower in the last
decades of the 20th century,
seeking to manage international
affairs has become an amaz-
ingly complex task. It is not
simply a matter of trying to
maintain the military balance
of power between East and
West There are other centres
of power, such as Brazil, India
or Iran, outside the central
balance. There is the question
of how the developing countries
can fall into existing world
trade arrangements. There is
unfinished business in the Law
of the Sea and the attempts to
prevent the proliferation of
nuclear weapons.

It would be unfair to lay all
those problems at America's
door, the American record is
much more good than bad. But
the U.S. is a superpower and
Europe looks to America for an
overall approach that' takes
account of the world’s com-
plexities.

The wrong way
to plan London

TONIGHT A rare event will
take place in the House of
Commons — MPs will be con-
sidering matters of aesthetics.
They will debate the Special
Development Order that Mr
Michael Heseltine has laid
before the House to speed the
erection of the winning design
for the Green Giant ’ ’site, just
up the Thames from the Houses
of Parliament, at Vauxhal Cross.

Mr Heseltine has been anxious
to improve tile standard of both
commercia land publieb archi-
tecture. To achive this, he has
opted for the wider use of the
architectural competition. This
is a welcome development that
should be encouraged. Unfor-
tunately, in the case of the
Vauxhal! Cross development, the
competion has not been handled
satisfactorily. The final choice
was left to the developer, who
has chosen the scheme of little
architectural merit The public
was given a chance to voice its
opinion of the three short-listed
designs. But the public's choice
did not tally with that of the
developer, and was ignored.

Inducement

The use of a Special
Development Order over-rides
normal planning procedures —
it was last used for the Wind-
scale nuclear power station and
has never before been used for
private development. Only the
objections of the entire Labour
Onposition front bench have
secured a deb ate on an issue
that wide repercussions for the
fofure of Britain's urban
fabric.

The device of an SDO was
offered by Mr Heseltine as an
inducement to developers to
accept the competition process.
The idea was that it would
guarantee develoners some
rcftid decision-making once a
design bad been accepted. But
the whole procedure risks
ignoring the public interest.

No one would question the

need for the standard of archi-
tecture to be improved, par-
ticularly in the capital and
along the Thames. Mr Hesei-
tme has rejected the develop-
ment of any form of detailed
planning brief for London. He
is content instead to let com-
petition — both aesthetic and
commercial— dictate the future
shape of the city. This approach
leads to difficulties of its own.
It was comnrebensive planning
that created the Barbican; and
it was the dictates of commer-
cial competition that created the
rampant and ugly architecture
built since the war over much
of London.

Tonight's debate should open
the vital discussion on the need
for new procedures to ensure
higher architectural standards.
Mr Heseltine has been bold in
his advocacy of competition and
his wish to speed up the inter-
minable bureaucratic planning
process.

What is missing is a clear
method of ensuring architec-
tural quality. Aesthetics are a
subjective business and the
mere fact that they are being
discussed in Parliament is an
important advance.

Parliament should reject the
unsatisfactory winner of the
Vatnchall Cross competition. It
would also be helpful if Parlia-
ment could ensure that the
judgment of architectural com-
petitions is always independent
— the role of the developer in
the assessment should be
limited.

Framework

To ensure a revival of quality
in the environment, particularly
in London, MPs might consider

ways of strengthening the
powers of the Royal Fine Arts
Commission and ensuring that
any planning framework for the
city give equal weight to Archi-
tectural quality as to spe£d of
development and ' Commercial'
viability.

BRITISH STEEL CORPORATION’S FUTURE

A crippling lack of demand

By Ian Rodger

T HE British Steel Corpora-
tion is once again in crisis.
The continuing weakness of
Britain’s main steel consuming
industries — motor cars, engin-
eering and construction — is

undermining the corporation’s
last ditch struggle to maintain
Its five bulk steetmaking plants.

If BSC decides to dose one of
the plants— and it expects to
maka a decision in the next few
weeks— that will 1 mark the
.-failure of the recovery plan
adopted shortly after Mr Ian
MacGregor became chairman
two years ago.

If it does not close a plant,
the chance of meeting the plan's
target of breaking even at the
trading level by next spring
will be significantly reduced,
thus risking the loss, of vital
government support
The decision is made much
more difficult by the fact that,
for . once, neither the oft-
maligned management nor the
workers can be blamed for the
corporation's sorry state.

The workforce has made big
strides in the past two years,
to improve productivity, reduc-
ing the number of manhours
required to make a tonne of
steel from nearly 15 to just over
eight. But there is still some
way to go. Mr MacGregor has
said he is aiming to match the
performance of the Canadian in-
dustry, where each worker pro-
duces 340 tonnes of steel a year
compared to BSC’s 212 tonnes
per worker.

The corporation has also suc-
ceeded, in spite of appalling
market conditions, in rebuilding
its home market share from 47
per cent after the 1980 strike to
its normal level of 54 per cent.

Key customers, such as Metal
Box and Guest, Keen and
Nettiefolds (GKN), were so dis-
rupted by the strike that they
diverted much of their steel
buying to foreign suppliers, but
they now say BSC has won back
their confidence and their
orders.

The problem is simply one of
lack of demand. Since March,
orders have fallen by about a
third to an annual rate of only
7.3m tonnes and there is no sign
of the upturn BSC was count-
ing on to fulfil its plan.

1 The great tragedy of British
steel is not the decline of the
British Steel Corporation." Mr
MacGregor said recently, “but
the decline in the British manu-
facturing industries.’’

BSC has been chasing that
decline for so long that it is
difficult to remember the heady
days of late 1972 when the then
Government endorsed the cor-
poration's ambitious £3bn ex-
pansion plan.

Crude steel making capacity
would rise from 27m tonnes to
33m tonnes. Following the
latest Japanese practice, bulk
production would be concen-
trated on large coastal sites
where super-carriers could land
huge tonnages of iron ore and
coal. Adjacent rolling mills
would turn out long, efficient
runs of finished products-
Partly because of political
pressure and partly because of
the many sites inherited at the

time of the 1967 nationalisation.
BSC did not aim for plants as
large as the Japanese,
choosing instead to
spread, the expansion over five
sites, Llanwem and Fort Tal-
bot in Wales, Scunthorpe and
Teesside in England, and
Ravenscraig in Scotland.
Together, their capacity would
double to nearly 29m tonnes by
the early 1980s.

But within a year, these ambi-
tious designs were being undone
by the effects of the world oil
crisis and high inflation on
Britain's manufacturing Indus-
tries.

The number of cars produced
in Britain is now 50 per cent
lower than in 1972 and the value
of new construction contracts
is down 40 per cent. Mechanical
engineering activity has de-
clined 25 per cent since 1975.
So much for the long, efficient
runs of finished steeL

By the time of the 19S0 steel
strike, capacity had been cut
to 15m tonnes and the work-
force slashed from 210,000 in
early 1976 to 166.000. Losses
over the five years to 1979-SO
totalled £1.6bn. and several big
works had to be shut down.

But it was still not enough

THE DECLINE of Britain’s
steel industry has been
uniquely severe In the major
industrialised countries.
Other steel industries have
suffered to a greater or lesser
extent with the series of reces-
sions since 1973 and from the
increasing pressure to pro-
duce steel as efficiently as the
Japanese.

But none has suffered the
precipitous 37 per cent Oil! in
home consumption that has hit
British Steel ' Corporation
since 1972. In the U.S., for
example, apparent steel con-
sumption last year was down
only 7 per cent from the 1972
level. In West Germany, it
was down IS per cent over

and when Mr MacGregor

became phairman in .Tilly 19 gO

it was widely expected that
further substantial capacity
cuts would be made arid, in
particular, that one of the five
bulk steelmakihg sites would
have to go. After all, the five
together were by then produc-
ing less steel than was foreseen
in 1972 for Teesside alone.:

But in December, Mr Mac-
Gregor surprised everyone by
seeking only a small reduction
in manned capacity to 14.4m
tonnes and the 'elimination of
only a few peripheral plants.

The five bulk steelmaking
plants WOUld be TnaintiiTneri ,
although manpower would be
cut to the bone. The thinking
was that, with only a: slight
improvement in demand in
1982— and the recovery of its
market share — BSC could break
even by the spring of 1983 and
then go on to make profits.

Moreover, by ■maintaining the
five plants, the corporation was
keeping an extra margin of
capacity in case demand moved
strongly higher in the mid-
1980s. Because of its commit-
ments in the overall European
steel capacity cutbacks, BSC
does not like to be specific? about

its "potential" capacity . as
opposed to its “manned" capa-
city, but the potential figure is
believed to be around 20m
tonnes, an extra third.

It was a daring plan; Mr
MacGregor himself called it
optimistic at the time and said
contingency plans for liquidat-
ing portions of the business
would be promptly implemented
if the corporation' failed to
achieve the targets set . .

In the event BBC has so far
met all its industrial targets,
regaining its market share, in-
creasing its exports and. making
spectacular improvements in
productivity. Another 66,000
jobs have' been eliminated in
the past two years and some of
Ihe plants, notably in South'
Wales, -are operating at inter-
nationally competitive - eost
levels.

"■ Until this year, the corpora-
tion was also meeting its finan-
cial targets, thanks in part to
the higher prices madepossiWe
toy the crisis measures taken by
the European Co mmission. If
it hadnot been for the disrup-
tions caused by the rail strikes
and the bad weather in January,
BSC would have ' been well
ahead of its target of reducing

HOW BSC COMPARES

the same period, in France, 21.
per cent and Belgium and
Luxembourg 15 per cent.

In Italy consumption has
actually increased 9 per cent
in the past decade. •

These figures are backed up
by statistics of the main con-
suming steel industries.
Whereas car production in
Britain has been halved since
1972, it has risen more than.
1 per cent -In Germany and
fallen 22 per -cent in -France
and 27 per cent in Italy. ' -
Between 1975 and 1981, the
engineering industries ■ of
France, Germany, Belgium
and the Netherlands have all .
grown by more than 19 per

cent and Italy*shy 30 per
cent

Thus, It is not sniprising
that other European steel-
makers ; have not made as
dramatic eats in manpower
and capacity as has BSC In
fact, ■. according : to EEC
figures, every country except
Britain and . Luxembourg -has
raised capacity since 1973. ..

While BSC has ent its steel-
making manpower.; by half
since 1976, Italy's Is un-
changed, the NefheriamTs is
down . a tenth; Belgium’s a
quarter, Germany's 17 per
coot and France's 37 per cent

, But the slump in demand
in tiie past two years has hurt

.. Graham Invar.

its pre-interest loss to £70m in
the second half of last year.

Then m March, demand ,sud :
derdy dropped away. Producers
- initially attributed it to the
' aftermath of extra stocking by
customers in advance -of price
increases on most. steel products
early in 4he year. But when the
shunp ' persisted, into' May and:
June, they had to acknowledge
more fundamental causes. .

1 The. main steel , consinmztg
industries in the TJK are still
deeply depressed. BSC has now
abandoned its forecast that they
would show a L5 per ent in-
crease in ou&Ul this year, and
is looking for the. c o ns tru ction
and manufacturing industries to.
turn around early next year.

For the past few months, cor-
poration officials have been
hinting Ant the target break-
even-point of March, 1982 could,
recede to.the summer. More re-
cently, they have added that the
corporation could slip back into
losses" again after reaching
-breakeven.'

Then, came the TjJS. Govern-
ment’s move earlier this month
to impose countervailing duties
on subsidised steel imports. BSC
was .singled out as 4he most
highly subsidised source- and

.even the strongest European
steel companies and cutbacks
are becoming more wide-
spread.

The .French Government
MimmitMl earlier this mon th
a £2.3bn plan to cut rapacity
from 29m tonnes to 24m
tonnes. ’ It is expected that
10,000 to 12JM0 jobs will have
to be died.

Belgium's CocheriDr&ambre
said in May it . would cut
rapacity from 8^m. tonnes to
6.1m tonnes and reduce the
workforce iy 3,900; ■■

But estimates of ^excess
. rapacity in the EEC : still
range up 70m tonnes so there
is. likely to be a lot. more
heartache all rinuuL ••

■ henceforth, . importers of BSC
products have to post bonds
equal to 40 per cent of their
purchase price. Few were ex-
pected to want to continue to
buy BSC steel.

- Given the continuing squeeze.
BSC officials inevitably reflect
that if they shut one of the five
bulk steel plants, operating and
financial results would improve
dramatically-

Mr MacGregor himself has
said that five sites are too many
for making only 14.4m tonnes of
steeL So there can be little
doubt of what the board had in
mind when recently it lau nched
a review of its plant configura-
tion.

•’ Reducing -capacity in steel
is never as simple, or neat as
it rounds: The about-turn in
the late 1970s left Teesside, for
. example, with an immense new
blast furnace that could make
~ far. more iron than its steel
-plant could handle. Port
Talbot’s basic oxygen steel
co nve r tin g plant never got. the
third vessel" that would have
made its operation much more
-efficient -

; But '-now there is a' fairly
dear choice. Ravenscraig in

- Scotland. It is- one of three
steelmaking sites associated
with strip . mills , the others
beiog lianwem and Port Talbot.

'Demand is very weak, in this
" sector and the loss of one plant
would scarcely be felt

Ravenscraig is thought to be
the most vulnerable of the
three, partly ‘because produc-
tivity there has not improved
as rapidly as elsewhere and
. partly because key .local mar-
kets, such as the Linwood
car assembly plant, have
disappeared.

- There is an irony in Ravens-
craig’s plight. Like the five-site
plan -itself; it exists because of

. a politically imposed compro-
. mise. In 1962, the Conservative
Government of - Mr Harold
Magmiilan insisted for political
reasons on budding two strip
mijl^ in f frnflanri and South
. Wales, .when on. economic
. -grounds -only one was needed.

Closing Ravenscraig or any

■ other big plant would be a diffi-
cult move for the current
Government to endorse in the
fourth year of its term. Scot-
tish industry has been devas-

: Stated iff ■■the past three years,
-witb'tiie-loss-nf Linwood. the
Wiggins Teape- ptdp miU at
Fort William and -the British
Aluminium smelter - at Inver-
gorden.

But all this is perhaps tm-
necessarilv pessimistic. BSC'S
latest corporate plan, through
.to 1935. sttil aims to .maintain
the present plant configuration,
although .the plan concedes that
failure to achieve further cost
cutting targets could result in
the closure of one or more inte-
grated plants.

Mr MacGregor himself says he
is still optimistic, although he
has an odd way of expressing
it: .

“The absence of swallows
does not mean that summer
isn’t coming.”

Men & Matters

High flier
at work

One man to be taking the tube
strike with more than usual
stoicism is Sir Peter Masefield,
who as chairman of London
Transport is at the very heart
of the storm.

Yet Masefield, 68, finds his
energies undimmed by the dis-
mal wrangle, and still manages
to spend between 5 am and
7 am each day writing books —
the only time when his tele-
phone does not ring, he
explains.

“I find my energies compres-
sed by all this rather than cur-
tailed,” Masefield says.

This year, he published his
first book, appropriately titled
To Ride the Storm. It is the
result of his own research into
what happened to the British
airship, R101, which crashed
after repeated warnings to the
Government from technical
experts.

His next will be the story of
how Lord Thompson, the former
Air Secretary, fell in love with
the Romanian Princess Bihesco
as a military attache in Buch-
arest during the First World
War.

Masefield plans two more
about aviation and transport —
a subject in which he is extra-
ordinarily expert, since he was
air correspondent for the
Sunday Times in the early days
of the last war, then Britain's
first civil air attache in Wash-
ington, and is now deputy
chairman at British Caledonian.
And tills is only a small part
of his wide aeronautical back-
ground. Last, but not least, he
has started work on his auto-
biography.

Although Masefield is a firm
believer in Parkinson’s law —
that work expands to fill the
time available — he admits that
retirement in September wiU
allow h«n more ihne -to concen-
trate on writing.

-■^Keith-Bright chief executive
at Associated Biscuits, will be
taking over. Masefield adds:

“And Loudon Transport just
about takes the biscuit, too.”

Brainchild

It is a familiar complaint — too
many British ideas and inven-
tions have to wait to be
developed commercia Hy else-
where. But when the topic
cropped up during a lunchtime
chat in Co. -Durham recently,
those around the table decided
to do something about it

The outcome was the forma-
tion this week of a joint com-
pany by ICI and Stockton-based
management consultants Marl-
borough Teesside Management

Their brainchild, Marlborough
Technical Developments, will
assess the commercial value of
ideas and opportunities which
originate within the chemicals
giant— or any other source —
and set up. where possible,
se narate businesses to develop
them.

To p brass at ICT believe that
MTD will encourage new and
profitable ventures in fields
which otherwise misht remain
undeveloned in their own
oreanisatTon.

Former ICI man Richard
Lines, who with Brian Wiggins
and Dr J. P. Regan, also from
the chemical industry, set up
MTM five years ago. says: “The
speed of exploitation of new
technology in this country has
been somewhat slower than in
some other countries. Some new
ideas or processes in a big
organisation like ICI tend to get
mished ^to the end of the Queue
fnr capital. This is one way of
g ft * +i n or ♦ftiues some.*’

MT-w has at leo*t no* notable

pnivuMKt to rrprtif Tf rT* a t*d

dPV“Wrt the eneciflh'tv

r!herr ,! '* a l ina'njif-jnhTri^B- COttl-

n»nc Seat Sands, which it sold
late last year for between 55m-
SGuv—td a U.S. group;

Lines savs the ioint company
wiH fond similar ventures
which, as they develop, may
either retain their separate
identity or be brought hack

— .... • • -r

within the ICI fold.

Several ideas are already
being examined — including the
exploitation of the bio-degrad-
able (it rpts) plastic PHB (ipoly-
hydroxytoutyrate), which ICT
makes from in Icro-orgarUsms.

“ We have the combination of
technological know-how and
commercial ability which should
enable us to do the things here
which, for lack of time, money
or spwareness have- been left to
others," says Lines,. - -

Pressmen

A case of different strokes for
different folks confronted a
delegation of businessmen from ■
the Far East on a tour of
industrial plants in the U.S.

While the American machines
whirred and thumped with im-
pressively modem efficiency, the
visitors were puzzled by the
extraordinary. level of safety
precautions around the factory
floor of one steel -pressing shop.

Looking over a particularly
mighty metal press, one of the
visitors asked why it was neces- :
sary for two men to be -
permanently stationed either
side of it, apparently contrfbut- "
ing nothing other thaw their
physical presence.

“ Those," explained the hosts,

“ are the guards that we put
there to make sure nobody gets
a hand or two caught up in the
machine.”

The visitors dissolved at this
point into a fit of apparently In-
explicable giggles. The
puzzled hosts asked, what could
possibly be regarded as fuuny.
There was an awkward poc se;
until the leader of the visiting
delegation took It upon hhnseJf
to explain their mirth. “What
sort of a man do you have here,"
he asked, “who would want to
put one or both of his hands into*
a 20-ton metal press?" ■

Royal insurance

Even the SoriaHst-insp^ed
National Enterprise Board, now

part of the British Technology
Group, seems to be cashing an
on the current surge of
patriotisn. and love of ton
royalty. •

Last year, -it was decked out
by Sir Frederick Wood, "its new
chairman, with a red, white and
blue logo that looked Mfce ihe
tail of -a British Airways jet.
Now Wood has -issued men on
the staff with similariy striped
^ coloured ties and /the ladies
with scarves.

Princess- Anne . officially
opened the group's controver-
sial Inmos micro-chip plant in
Colorado Springs • during- . her
visit to the U.S. and -Prince
Charles zs thought to tie ifrtwri
up— 4n. hte capacity as Prince
of Wales of course— to do the
same for the Inmos factory now
being -completed in' Newport,
South Wales. - A form of Royal
insura nce against the project
being chopped by tim Goveaxt-
taaent one day? •

Time piece' ■■

To. point out the reliab&tty and
accuracy of -its wattles, , Rolex
has .- mounted as advertising
campaign informing the world
■that it is responsible ‘for V the
time keeping at Wimbledon. . .

It illustrates the point .with
a photograph of a Wimbledon
scoreboard, the top . of winch
carries the time by courtesy of
-Roles. On the board 'itself, one
side records the individual
reores of four sets, showing that
. John McEnroe has. won. -three:
and Bjorn Borg, one. The other,
sides gives tiae r total - score,
which It claims is one set aR.

Shome migjhtafr^ c ^MW Piy? v

Winding down \.

Al cwnhuteoryvwn d ii BM K? order.
I see,; has heCT^miSe%gamst
company called., Clock. Face
(UfY). , V : - r'.

Observer

ATOMIC CLOCK
Combines precision with the

ru g&dne ss needed fa operate

in extreme enylrornnenii.

For 150 years St. Quintin have •
been developing professional skills in
the world of commercial property.
Without that experience, how could -
• .they meet th£ challenge of "

\ : - modem times? : V

U - •

•i •

d • •

A -

r. 43

!■-:

•'* •* *

. I - -' \

Financial Times Monday June 28 1982

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■■. ;

:•/ -is-.

FINANCIAL TIMES SURVEY

Monday, June 28 1982

, . . ■ ■ ■ ■ .w r wy -h*^

■ V v . ' * v* ;; : f =-? & ' : ■ '

Most sectors of the; property market have spent another year
in the doldrums, with voids increasing and rents showing little sign
of recovery. There is some comfort, however, in that the market is now stoutly
underpinned by Institutions which last year Invested a record £2bn.

Based to weather
the hard times

BY MICHAEL CASSELL.

JT WOULD take an estate
agent's fertile imagination and
a property developer’s blind
enthusiasm to suggest that all
is veil with the UK commercial
property market. It would, on
the other hand.' require an un-
healthy blend of cynicism and
pessimism to paint a picture of
all-pervading gloom.

The property market has in-
evitably succumbed to the same
recessionary Influences which
have made their mark on every
sector of the economy. Bnt after
an unrealistic period in which
many thought the market was
somehow going to buck the
trend, there is now a growing
— though not universal — recog-
nition that medium-term pros-
pects are strictly limited.

There is at the same time
considerable satisfaction — not to
say relief-— that the foundations
of the UK property market are
now buried deep in firm ground
and clearly capable of with-
standing the pressures bearing
down on them;-ro happy contrast
to the dismal days of the early
1970s.

The essential differences to
have emerged over the last de-
cade are by now well catalogued
bur at a difficult time like this
are still -worth repeating.

The property development

and investment markets are now
dominated by institutions which
do not necessarily avoid all the
mistakes of. their entre-
preneurial predecessors bat
which are at least better placed
to sit tight when the going gets
tough.

Many of the unsound de-
veloper-trading activities and
even more dubious financing
arrangements, which once be-
fore invited disaster, no longer
form constituent parts of the
market’s make-up. though the
gradual return of some old and
familiar names demonstrates
their undying fascination with
property and their ability to for-
get previous, calamities.

But if the .property markets
do not harbour the * same in-
herent structural weaknesses
laid bare ten .years ago, they
are none the less experiencing
some unwelcome, though less
fundamental, difficulties.

The principal and simple
problem is one of demand— -or
rather the lack of It The re-
cession has inevitably led to a
widespread corporate retrench-
ment across a very broad field.
With the redaction : In numbers
employed and the drive for
greater efficiency and lower
overheads has come a cut in

the, volume of flobrspace re-
quired to house industrial, ware-
housing and commercial activi-
ties.

The associated reductions in
consumer spending have at the
same time knocked an equally
big hole in the retail property
market.

■ Fluctuations in demand for
floor space are hardly a new
phenomenon ‘and just how
badly the commercial property
markets suffer during periods
of weakness depends on the
extent to which they have kept
in touch with tbe market place.
The relatively modest weaken-
ing in trends to dale would
suggest that, in most respects,
the industry has not wandered
loo' far astray. <

There is no question, how-
ever, but that the reduction in
demand for accommodation,
allied to some reasonably high
levels of new development
activity, has created the type
of overall surplus which saps
the strength and short-term
growth potential from the pro-
perty sector.

. Repercussions

The repercussions have been
arguably slow in manifesting
themselves ‘ but they have
finally worked through and
have become progressively
harder to deny. •'

Rental growth for boost types
of space has stagnated or. at
best, merely managed to keep
in touch with inflation. Rents
overall are calculated to have
been rising at their lowest rate
for five years and the reality
is that many have not risen
on any basis." .

. Predictably, enough, office

rents in locations like the City
of London have performed best,
with growth rates generally
matching inflation, but the
problem for less well, located
property is just as likely to be
one of finding any tenant at
any price.

The industrial property
market, hit first and hardest,
now has a historically high
volume of floor space lying
vacant around the country,
much of it never likely to
attract another occupier. With
an inspiration bom out of
desperation, every marketing
technique and gimmick in the
estate agents’ handbook has
been used to find owners or
tenants. Success has been
patchy, though there are indica-
tions that the worst may be
over and that lettings, while
still on a highly selective basis,
are again on the increase.

In the retail sector, tbe same
pattern of weak demand and
yawning voids has been re-
peated. In central London shop
rents have continued their two-
year slide and in Oxford Street
they ■ stand, according to one
agent, more than 50 per cent
down on the levels prevailing
two years ago.

Such descriptions of the pro-
perty market inevitably’ amount
to generalisations about speci-
fics and broadbrush assessments
cannot take account of the indi-
vidual deals and developments
which have defied the general
trend. There have been lettings
involving property which
appeared temporarily unlettable
while apparently attractive
buildings remain empty.

■ But it is nevertheless dear
that as surpluses of space have

multiplied so a market which
often seems almost totally con-
sumed by the virtues of quality
and location has become even
more obsessed with these guid-
ing principles.

The indications are that such
preferences are well founded,
for when conditions deteriorate
so the marketability and hence
potential investment perform-
ance of different properties can
begin to vary widely.

Roger Taylor

London's former dockland areas contain considerable development potential.
Taylor Woodrow's International House (above) is the second phase of the London
World Trade Centre at St Katharine’s Dock below Tower Bridge

Defy reason

The invesiment market

commercial property is now in-
terestingly poised. Institutional
spending on property in 1981
readied a £2bn peak, ignoring
the clear signs of deterioration
in market prospects and help-
ing io keep yields In most sec-
tors at levels which, some claim,
continue to defy reason.

In truth, the short-term prob-
lems of the property market
have little significant impact on
the overall institutional
approach towards real estate as
an investment option. Property',
as one agent recently reminded
everyone, is not and never has
been a commodity to be traded
in as stocks and shares and its
characteristics do not easily
lend it to very’ frequent per-
formance analysis.

But if the appeal of property
is unlikely to diminish in the
eyes of the institutions, there is
little doubt that, within that
commitment, a review of pre-
ferences is underway.

While it may be true that
prime yields are doggedly stick-
ing to historically low levels,
the definition of prime is itself
becoming increasingly res-
tricted. What a. short while ago

was considered to be of institu-
tionally prime standard is no
longer necessarily seen in the
same light — a trend which is
tantamount to an easing of
yields.

Across the country and in all
types of property the market
for secondary’ property invest-
ments. under their widening de-
finition. remains limited and
recent auction results have illus-
trated that imperfect industrial
investments will only change
hands at yields to the purchaser
of over 10 per cent. For both
shops 3nd offices there are high
vacancy rates in secondary and
tertiary locations.

But can existing prime yields
continue to be justified, given
the medium-term outlook for
rental growth? There are those
who suggest that' as inflation
moderates and rental growth re-
duces so yields will inevitably
begin to rise. .

Others, however, disagree.
They emphasise that any in-
vestor should be looking for a
long-term return which exceeds
tbe rate of inflation; if that is
set to run below 10 pm- cent for
the foreseeable future then it is
likely that rental growth will
also run at lower levels. A

longer term reduction in infla-
tion is, the argument goes, only
likely to follow a period of fall-
ing interest rates and a reduced
yield from alternative invest-
ment instruments, implying that
target returns from property can
also be adjusted downwards.

Who is correct remains to be
seen but in the meantime there
are dear signs of disenchant-
ment, however temporary, with
property among a number of
institutions. Some have heavy
development commitments
which may well not begin to
produce the income flow on a
scale or within the time origin-
ally expected. Others have
simply stopped buying for tbe
time being.

The influence of the institu-
tions on the property market is
a controversial issue and is
polarised between those who see
them as a stabilising factor and
those who regard them as a
stuffy and stultifying sponsor.
The least that can be said in
their defence is that their pre-
dominance (and their ability to
sustain shocks to the system
which others might not cope
with) should help keep the pro-
perty market on a relatively
even keel.

I CONTENTS

Share markets

Volatile movements- ...

Local rates

Burden on businesses

Investment

Inflow remains high ....

Incentives

Abundance of grants

City of London

Even prime areas

feel

pinch

Shop premises

Industrial

Long wait likely

Offices

Escape worst ravages .

West Midlands

Developers’ long-term view VI
East Midlands

Mood of caution VI

South East

Test of resilience VII

South West

Small premises fare best VEt
Scotland

Shopping developments V3H

North of England

Few sparks of life .VUI

-_s

- =■£

* *

$ 9 &

- -d

- - . • rT^r J

:V' V

For the last 162 years, the Healey and Baker
Partnership has been advising clients over the
entire spectrum of commercial property. Healey
and Baker’s expertise encompasses: investment;
shop, office and industrial agency; valuation;
management; funding; town planning and
development

Healey and Baker act for Governments,
Banks, Financial Institutions, Pension
Funds, International Corporations and
Development Companies as well as a
substantial number ofU.K Commer-
cial and Industrial Organisations.

Professional clients... demanding
a professional service.

ealey &

Established 1 820 in London

29 St. George Street Hanover Square,
London W1A 3BG. Tel: 01- 629 9292

Citv ofLondon: 118 Old Broad Street,
. London EC2N 1AR

Amsterdam Brussels
Glasgow Jersey
New York Paris

W*i

■ / ~ r~ £jrr.4 :

'■ ■•■■■

.14

Companies and Markets UK COMPANY NEWS

Knight Computer | Rowe Evans £6m

placing at 60p

THE PROSPECTUS is pub-
Ufihed today for the placing of
2.45m shares in Knight Com-
puter interna Ilona I at 60p a
share raising £1.47m for tbe two
major rounding shareholders.
Fonowing this placing of 45 per
cent of the capital (there is no
new money Tor the company)
Knight will join the USM on
Friday.

Knight, which is a leading
computer service company
supplying staif ralher than hard-
ware. is forecasting profits of
£450,000 Tor 1982 and dividends
of 1.6p a share. On this basis
the pricing is pitched on a fully-
taxed prospective p/e of 15.1
and yield of 3.S per cent.

Knight was formed by Mr
Jenner and Mr Seilis in 1972.
Since then it has grown into
one of the largest suppliers of
computer personnel on a con-
tract basis in the UK. This
activity provided 93 per cent of
turnover in 29SI. The categories
of personnel supplied include
project leaders, consultants,
systems analysts, programmers
and operators, though the grow-
ing trend is towards specialists
rather than operators.

Currently the company em-
ploys 250 people full time which
are put out on a contract basis
to clients. Assignments can last
up to five years though the norm
is somewhere between six and
12 months.

Knight's customer base takes
in a wide spread of industries
including hanking, insurance,
the oil sector arid local and
central government.

It also operates a small
recruitment service finding
permanent staff for its clients
and has pushed into the con-
sultancy field.

Within two years of starling
Knight the owners hranchcd nut
with an office in Amsterdam.
From there Knight services
Belgium. France and Germany.
There is an agency agreement in
Scandinavia.

In February 19SD Knight
opened 71s first office in New
York and despite a hesitant'
start in the nine months to
Deccmher Itftl ‘it contributed an
eighth of group turnover. Over-
all overseas operations
amounted to half group turn-
over in 1981.

Knight’s profits record has
taken a nasty ijcnl in the pa*i
few years. In the year to March
3977 Knight iijndp £46.900 pro-lax
before exceptional items, and two
years later the company was up
to a peak of £399.000. inflated,
the directors admit, by currency
factors. In ihe following 12
months profils were down by just
over £100.000 and in the 12
months to March 1981 Knight had
fallen further to £225.000. In

THE THING HALL
I'SM INDEX
135.3 (-0.2)

Close of business 25/6/82
Tel: 01-638 1591
BASE DATE 10/11/80 100

the nine months to December
19S1 profits were back up to
£208,000.

One of Knight's biggest prob-
lems was its attempt at moving
into turnkey operations where
ihe development of a new >>slem
in co-operation with a major
manufacturer ended in a disaster
and with Knight £100.000 out of
pocfccL despite litigation which
clawed hack cunts from the manu-
facturer lo cover ihe cost of re-
imbursing customers.

The enmpany also estimates
that the costs nr setting up the
U.S. protect hi L profits In the
tune or £70.000.

Brokers to the issue are E. B.
Savory Milln.

• comment

Drawn by some rather heady
ratings computer companies have
hcen ' popping up in the USM
since its inception. Knight is
broadly wiihin the fold though
.slightly apart because it is a
supplier of specialist personnel
rather than hardware or soft-
ware. It is somewhat like an
employment agency providing
temporary staff but without Lhui
sector's inherent problems oi
uversupply. For the time at least
the computer industry is shorl
of lop flight specialist staff and
the profit margins on Knighi’s
type of business are far from
mean. They are even heller in
the U.S.. hence the company's
push overseas. By ihe end of
19S1 the U.S. will i count for 20
per coni of liimovv and the new
Los Angeles nflire ;s scheduled tn
open around the turn of the year.
Europe, in contrast, is a fairly
sluggish market at present and
the I’K is not immune to Ihe
recession. Knight puls up a fair
defence against its patchy record
— the expense of setting up in
the U.S. and the disastrous turn-
key project . Shareholders ran
only hope ihe future will not Itnld
more of the same. Presumably
Knislu has learnt some lessons.
The most obvious comparison for
the market is with Trident but
that company's image has been
dented by a recent profits slip
and Knicht does enjoy more of
an international flavour. Any-
way Knight's p/e of 15.1 and yield
of 3.R per cent hellers Trident's.
So it should get a fair reception
though iaunrhihg inlo a faffing
market is not the easiest or
births.

London Shop

London Shop Property Trust
and Beanmonf Properties
announce that proposals have
been formulated for the existing
£3.437. 793 S per cent unsecured
Inan stock 19S7-97 of Beaumont
to he exchanged into a new 81
per ccnl stock of London Shop
on a £1 for £1 basis.

plantation deals

ROUT EVANS INVESTMENTS
will make an agreed £6.26m bid
for two private plan! al ion groups
as a means of acquiring a fuU

Stock Exchange listing for its
shares currently traded under
rule 163.

RET. which has plantations in
Indonesia and Malaysia, an.
nuunred that it will acquire the
capital it does not already own
nf J1.P. Evans and Co and Song-
kai Estates.

Evans has interests in a number
nr plantation companies and a 40
per cent stake in an Indonesian
company which owns the 2.46S
hectare Krra^ann Estate. Sund-
ial’s principal asset is the Sudgei
Fruit Estate in Perak. Malaysia,
which produces rubber and nil
palm.

REI will issue 18.963.645 fully
paid top shares lo fund these
acquisitions taking' the number
nf shares in issue tn 35,065,731.
[t will acquire all the 1.14m £1
Evans sharer, other than the
91.500 it already owns, ail the
75.000 5.6 per cent £1 preference
shares of Eruns and 75,000
ordinary £1 shares of Sunkei
Estates.

For t fie purpose of the acquis-
itions RE!. Evans and Sunket
have been valued at £2 21m.
£5 4fim and £l.R4m respectively.

REI will offer 1.307 nf its nwn
sham for every 100 ordinary
Evans shares. 6.7S1 shares for
every Jflfl Sunkei and 252 fnr
every ion Evans preference
share'-.

REI said that tbe expansion
of its capital base by these
acquisitions would put the financ-
ing nf its Simpang Kiri Estate
in Indonesia, which requires
further significant investment, on
a firm long-term fooling.

BOARD MEETINGS

The lotcfann; Compaicai hevp notified
dales of beard meetings to the Stock
Everting*. Such maevry)* are usually
htHd to; the purpose of cora'danitg
dividends. Othnal indications an not
available ss to whether the dividends
ate "ilenma or (nils and The sub-
divisions shown beicw era baaed mainly
on fast year s iungubie.

TODAY

Interims; A’ G. Barr. Haniys. Vectis
Stone.

Fmab i: Barker and Dobson, Brown
and Taws*. Country Gentleman's Asso-
ciation. eleotroeompcnents, London and
Liverpool Trust. Marshall's Haitian.
Ttonrc*. Scm>e.

FUTURE DATES

Interim —

TSL Thermal Syndicate July 2

Finale—

Eqioty Consort Invest. Trust July 6

General Efectrc - July 1

Hovenn^him June 30

Fh.iJ.ps Patents June 30

Russell Bros (Paddington) ... July 2

It would also establish a more
favourable distribution of Us
investments between revenue
earning assets and those intended
to produce long-term capital
growth, it added..

Evans currently qwns L 987 2 56
REI shares which would repre-
sent 7.93 per cent of its capital
after the acquisitions. The board
of Evans considers it in-
appropriate to hold shares in
whar would became its parent
company and has sold its entire
holding to institutional investors
at 33p per share. On this valu-
ation REl's offers are worth
£6 26m

Completion of the acquisitions
Is conditional on the granting of
a Stock Exchange listing. REI
expects dealing to start on July
20

William Press

The rer-ent rights issue by
William Press Group has heen
arrnptPd in respect of 15.063m
•.hares, nr more than 89 per cent.
The shares nor taken up have
been sold in the market at a
premium.

Consortium
take 75% of
Chas. Booth

AN ANGLO- Dutch consortium is
tn take a 75 per cent holding
in the Charles Booth property
croup with the aim of bringing
the company to the Unlisted
Securities Market later this year.

Hunting Gibson, the ship
owning and management group.
Hunting Associated Industries,
with aviation support, engineer-
ing and surveying interests, and
the Dutch mortgage bank
Fr icseh-Gmni ngsche Hypotheek-
hank will each take a 25 per cent
holding. -

Stockbroker De Zoete and
Bevan, wfll offer 3tp m cash fnr
each Booth share in a deal worth
£531.790. Hunting Gibson said.
The two controlling dirertors of
Booth and their wives who nwn
about SO per cent of the share.*
have undertaken tn accept in
respect of a block of 1.9m shares
—75 per cent of tbe equity.

The capital injection will allow
Booth tn expand at a much faster
rate . said Mr Stanley Newman,
joint director.

F.T. Share
Sendee

The following security has
been added to the Share
Information Sendee: —

Stewart Nairn (Section: Pro-
perty). . '

SPAIN

19S2

June 25
Pncs .

High

Low

■

366

335

Banco Bilbao ....

.. 332

362

290

Banco Centra/ .

.. 290

32*

290

Banco Exterior

.. 300

337

506

Banco Hisoano .

318

115

110

Banco Ind. Cat. .

.. Ill

367

315

Banco Santander

. 332

233

180

Banco Urquiio

.. 180

335

252

Banco Virraya .

.. 382

250

216

Banco Zaragoza .

.. 237

180

103

Dree ados

,. ICG

Ewwno/a Zinc ...;

66.5

532

Fecsa

.. 83.5

Gal. Precado*

662

530

Hidrela

.. 62.2

iberduaro

KM 5

PstrofEos

,. 76.5

101

Petrehber

101

5.5

Se^sfiaa

.. 600

Tr/ctoa <ca

. »-2

=3.2 Un-gn Elest

55.2

This announcement appears as a matter of record only.

OLC

Orient Leasing (Caribbean) N.V.

( Incorporated with-limited liability in the Netherlands Antilles)

Kuwaiti Dinars 6 , 000,000
1 2% per cent Guaranteed Notes due 1 987

Unconditionally guaranteed by

Orient Leasing Co., Ltd. and Tbe Sanwa Bank, Limited

(Orient Lease Kabushiki Kaisha) (Kabushiki Kaisha Sanwa Gtxtko)

(Both incorporated with limited liability in Japan)

Kuwait International Investment Co. s.a.k.

Kuwait Foreign Trading Contracting Kuwait Investment Company (S.A.K.)

& Investment Co. (&. A.K.)

Danya Europe Limited Alahii Bank of Kuwait (KSC)

The Commercial Bank of Kuwait SAK The Industrial Bank of Kuwait KSC
The National Bank of Kuwait S. A.K.

Arab Trust Company KSC Coast Investment & Development Co. PJ5LG.

Gulf Investments Company B.S.CO. Kuwait Financial Centre S.A.K.

Kuwait International Finance Co. (KIFCO)

EQUITIES

lesuv

price

!Ss)«gJ

32 BO
*6
IBP
16
(260
{5t8

'SO .....
(87 igp. F.P .{29/6

- f7.J -

f.pJ ssm

F.PJ3COT

p.pjpew

F,P,|16 4
;FJ*J 4«
F.PJ -
F.JK.lBfb

(157

)105

600

140

F.PJ 2/7
IF.P. 2/7
.P.P.I4/7
'■F.PjW/6
iw.p2 —

( 1962

LOW

280

260

107

293

163

140

.98

185,

160.

121

530

996

•166

160

! BO

■took

$ D«n cars.

BOri 92
7*3 50
«...;42Q
...J M

1.501 90
-12

»McCBrtby*8tone...^a5

9MItes53 IDe, 112

Ori flame SA (USWJ5B)plQ
*Rarikj City ’A’ mvJ eg
•{■Ruddle (G,) 10p_. J186
Zambia Cort* Opr IBKj 30

-HS

jMUl 2.1 4.0118.8
bLfil SA 4.9JU
-U3.0 ' 2.4J 4.7 j ]i7

^bUB. 3J>! l.BjlB.8

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juQ.Ua tjj.Q JiW.1

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.'udSJ 1 4^' 2Jk 9.7
bGHto 2.2 j 4.S 93
b5jfl .1.5^9.1113
bXj5 1 2.6' &5&J)

FIXED INTEREST STOCKS

Imujni

prlsa

1982

25 !■«='

** pa 1

1100 I

*100 I

*09.0*1
*100 j

101 J

7100
88 ,58;
*100 ;
(100
1100
100 1
9S.5a&
▼loo :
*100 •
4100 1

NU ,

£20 25/S

F.P.

14i7

1/7

High J tow

.w,

851*
1081,
,1461.
- >109

F.P. I 9/7 101
£35 J B/lffl 26 ,
F.P. i26/B 101*4

- 100TB

— 100

F.P.

FJP.

F.P.

£25

F.P.

r*.

F.P.

tMH

il07

92W

- iooi*liooid

_ r R4 *,

i * ,w i

- 47

• - | 45 ,

29(7 1 101*4

9*4

46
90 1*1

Stock

k-or

S-c

Oft

•Ben lax 8* Conv. Cum. Rri. Pt^. J 13 pm 1

BoumemouthWata^SRMl.Pif.'aTa^ ll**]
Crad. Fonder de r ance 24<x Lon J9B71 22i<
East Ana Ha Waiei ** Red. Prf. 1887
FI rat Mat. UUpe Conv. Urn. Un. 1M7 13H
LonAContJ llXCon v^ub.l)na.Ln.’96JRl 108
tMariboroughPropft.lflSCnv.Ln.'M-SOOa} 921*
jMMIand Bfc. 145 **Jb. 2BBMTJ 24

Mli#- Southern Wtr. B% Prof. 1987 _ ^..101**
Nationwide Bd S . Soc. 1**«S »5/4?M>Il00W!
Do. 136lg(83/5/«afclOO.-i

- Do. IgftX (3/8/83)J100 Ik

NSW Zealand- 1414X 1987. — 1 24 J 4 I

BIT A Northern 4po Net Cum. Prf- £141
Do. 4w7pc Net Cum, Prf. £ll 46

[Wrexham Water 0% Red. Prf. ’87-89...H01*,

- 1 *

^3”

h- 1 *

“RIGHTS” OFFERS

Latest

Issue ! 5^ i Renuno.

prto*(.g3-' <Uta

f!p.‘ 27)4 28/9
NH-, - -
F.P. 1 18(5 24/8
' FJP. 28)5 9/7
F,Pwi8/6 sort

nn ■ — — '

P,P.'24J6 13/8
f.p.,-17/6 sort
NM , 9/7 13/8
f.pJ24/» asm
F.p.lio tt 10/6

10 Anmbachar (HO Bp.

18cm laop l led Comoirter Tach_._

ZBO fsank Leuml (UK) £l

. 198 earless Oapel 10 p J

218 [Grand Met 80p 4

espmicraat Northern Tel (£10) —

62 Press (WmJlOp

380 ISaatchi A saatohi lOp

aapm'Skatchley- : —

91= sturta 2 Op. 1

24 Young (HJ —

RemindsNoa date usually last day for dialing. D m of stamp doty. ~ b Rgiva*
based on prospectus' estimate, d Dividend rata paid or payable on part at
cspiial: cover based on dividend on ton capital, g Assumed dhrMsod and ytald.
t indicated dividend: cover retatBs to previous dividend. P/E ratio based on iatast
annual H/nUgi, v Forecast dhddsod: covsr based os previous year’s ssmings-
F Dividend and yield based on prospectus or other official esrimstas for 1982.
Q Grose. T Flguras assumed. 4 Figures or report awaited, i Cover abews for
conversion of shares not now ranking for dividend or ranking only for restricted
dnridendf. 5 Placing price, p Psocs onlese othsrwias todlcatsd. .9 issued by
tender, f Offered to holders of ordinary shares as a “rights." **1sstisd by way at
capital Is* don. S5 R«(ntrodac*d. 71 Issued in connection with ramgstossttoo.
mertwr or telcs-ovar. || Introduction. □ Issued to former preference holders.
IB Allotment letters for tvlty-Midh m Prov istonal or pardy-poM allotment letters.
* With warrants tt Dealings under apodal Roto. * Unlisted SeourttUa
Mark*, tt London Listing- t Effective iastto Pries after scrip, t Formerly
dealt in under Rule 163(2) (a), tt Unit comprising Rvo.ordlneiy and throe
Cap. shams. 6 Issued free ss aa entitiamsat to ordinary holdam. .

Financial Times Monday June 28 1982

PENDING DIVIDENDS

. De*

Acrow July 28

■Aisxwider*

- Discount- July 19
Aina*

CdloWS.. July 18
Allnitt

- London;.. July 16
Aaaoc iatati
-Nswepapors. July 15
Ault & Wjborg Aug 5

'BPB tods June 30

Bank

Leuml (UK). .July -27
Bath and

Portland.. -July IS
*Bilton (Percy) July 28
Brawn. (John) July 24
Barclays

Birllu.iAug - 9
"Cable and .. •

Wirslsss...Ju|y. 13
Daily Mall &

Gen Tst.. July tE
Davy Coipn— July 23

Dlstiilera ' July 16

Dixons

Photographic.. Juiy 30

•Dowry i., July IS

“Etoctro- ' . ..

Cam po'n ante,. Jons 28
Fitch Lovell ..July 30

Gseratner July 18

Glyttwed ......Aug 5

Granada ...-~July 1

• GUS July 16

TGraans king L July 1
•RAT Group ..July 13

Ha atom era

Eaiatss- July 16

HHtords Aug 3

ttogg..

Robinson.. July 21

• Hoover' Aog 6

An noun ce-
ment last

year .
Fine! 0-75

Int 5.5

Pinal 2iQB7- .

Final 3.4

lflt-4.5
Int 05
Final 5.0

Int 3.1B

Int ‘2.0
Final 4.4
Final 2.5

JPt 10^'

Final due.

int 11.0
Final O
Final 7.76

Fids) 2. TO
FFnd 2JB r

Final

Fine) 3,71
Int 125
Int 2 AS i
Int 1.75
Final 8.0
Final 4.2
Final 1 25 .

Final 4.rt
Final 3.75

Final 3.0
Int doe

Antiounce-
Dacs mant last

Illingworth

Nl orris.. July 17

ICI :..July30

•linparisl -

■ Cent Gas. .July 8 Final BJ
' Imperial* “. . ‘ ...

Group- JtHy.-B
Initial. ........July »

•International '

Timber.. June 30
*LRC Intsmri.. June
La* Service -..July 30
•Uoyds Bank ..July 23
Lonrho :.......July 30

MFI Furniture July 23
Magnet end .

Southerns... July 14
•Meyer •

(Mont L.)...June 30
Midland Bonk July 31 ..

•NatWast July 27 . Jnt 9.BH

' *NorcrDj j ......June 28 Final 3.5E

‘ Nottingham

Manf.. July 27
F reedy (A.) ..Aug 3
•Rank

Organisation. ..July 12

Rantokii Aug 5

Rothmans

Ind.. July Iff Rnal 2.65

•SG8 ' .:.... July 5 Int 2.3

•Scortish & Nowc.

Browaries...July 1
.Thom. Bril .....July 10

Unlgau July .19

♦Union •

Discount,. July 21
.Vsntons July 28

' Wagon

industrial.. Jkup 4 Huai 3.0

♦ Board masting Intfmstsd: t Rights
issue since made. 4 Tbjc Irss. S Scrip
Issue sines mads. ‘1 Forecast.

Final nil
Int 9.0

Int 2.75
Final 625

Final 2.0
Final U
Int ZB
Int 8.625
int 3.0
Final 1-52

Final 3.0

Final 1J5
Int 8.0

lot 1.1
Final 2.75

Int 421 '
tor 1-Off

Final 2.875
Final 10.579
Final 40

tot 9.0
Int 3.0

M. J. H. Nightingale & Co. Limited

27/28 Lovu'Lsne London EC3R 8EB

Telephone 01-621 1212

antra

ipitaTisadon Company

. 4.044 Ass. Bn*, tod; Ord ; -

Asa. Brit. Intf CULS.,«

• P/E ‘

Change -Gross YIe/d Fully
Price on weak dtv.(p) % Actus] taxed

120

127xi

— 6.4 5J 10J 13J
-1 10.0 79 — —

4.110

. Afrapiung Group ..

‘71

0.1

8.6

SJr 13S

• 1.075

Armitage & Rhodes ...

* _

10.0

■3.6 8.1

13.503

Bardon Hill

221

9.7

4.4

10.7 13-1

1.375

CCL 11 pc Conv. Pref...

110

15.7

1*J

— • —

4.189

Cindloo Group

265

•

26^J

10.0

10.7- 12J

4.643

Deborah .Service* ....

8.0

10.0

3.0 ■ 5.B

4.143

■: Frank Horaslf

130.

8.4

4.9

11.1 24.1

10.690 '

' Frederick Fatkar

— -

B.4

8.6

38 1Z

378

. George Blair

—1 - —

—

' —

3.9B0

Ind. PracisioR Castings

— 7.3

7.4

7.1

10.7

?»au>

Isis Conv. Pref.

107xd

+2 15.7

14.7

—

2.667

Jackson Group

107

+1 TS

7.1

8.7

16.148

James B a trough

117

+4 9.6

8.5

2.340

Robert Jenkins.

230

— -31.3

13.6

3,660

Scruttons "A” ■_

+24 5.7

8.0

9 Z

11.1

3.783

Torday & Carlisle ..—

155

+1 11 A

7JJ

11.9

3CTH

Twlnlock Ord. ............

'164

+ 4 —

—

2.157

Twinlock ISpc ULS......

— 15.0

19.0

—

3.815

Unilock Holdings

— 3.0

12:0

7 A

10.504

Walter Alexander

-1 6.4

7.7

9.7

5^484

W. S. Yeates

235

— 14.5

6 Z

6.2

12J

Prices now available on Praaial page 48148.

77 bt advertisement complies with the requkematls of the Council of. The Stock Exchange.

•i .

SCI FINANCE IM.V.

'(Incorporated in the Netherlands Antilles)

/ _ • . _ ' • . _ •

U.S. $12,000,000

10Vi% Guaranteed Convertible Subordinated Debentures due July 1, 1997

. • Issue Price: 100% • ", '

' The Debentures u/Ul be Vnoondi&oaalty Guaranteed on a Subordinated Bass by

SCI SYSTEMS, INC.

(Incorporated in the United States qf America) ■

The following have agreed to subscrSte or procure subscribers for the Debentures: . .

* Dominick & Dominick, Limited R. Nivispn & Co.

Robinson-Humphrey/American Express Inc. •

The Debentures in the denomination of U.S. S 1,000 have been admitted to the Official list by the Council of Tbe Stock
Exchange subject only to the issue of the temporary global debenture. . . - -

Interest is payable semi-annually on January 1 and July 1 beginning January 1, 1983.

Particulars of SCI Finance N.V., tbe Debentures and SGI Systems, Jnc.are available in the Extd Statistical Service and
copies may be obtained during usual business hours up to and including July 12, 1982 from:

June 28, 1982

Dominick & Dominick Ltd.
8 Little Trinity Lane
London EC4Y2AA

R. Nivison & Co.
25 Austin Friars
LondonEC2N2JB

Tfis adysrtiswnwTt Is Issued to compIiancB wdth tfw nquiwnems of the CouncS of 71>ff Stode Exchsi«a it doesfiot
constitute en invitafion to any peraon to subscribe for or to purchase any securities.

•Authorised
£ .

8.750000 .

ARGYLE TRUST PLC

Share Capital/

. . Ordinary. Shares of 25p each

Issued

£L

5,157,612

The Council of The Stock Exchange has admitted ths whole of the issued sharecaprta! and
the 844.728 Warrants to subscribe for Ordinary Shares Issued by the Company to die
Official List FuU particulars relating to Argyle Trust PLC are available in the Extel Statistical
Service. Copies of these particulars may be obtained during normal business hours on any
weekday (Saturdays excepted) until 9th July, 1982 from:

H am bros Bank limited,
4T Btaho p sgo t s.

London EC2P2AA

Hoais Govstt limited,
Haroo House,

319^325 ffigb Noffiom,
London WC1V7PB

BBL (Caynm)
limited
U.S^30,000,dd0

Coanuteed Floating Bate
Notes 1984
Guaranteed by
Bangkok Bank Limited

lo- sccoidancs- with the previsions
of .tha guarantasd Notes notiea is
hnrnby given that the Ran hi
Interest tor cha naxt six months
IntsfMt’ Period lias ' bass fined- «t
17^% par annum. Tha. Coupon
Amount. of U.SS 87J7 will ba pay-
sbla on 29it> December, 1382.
against somndar of. Coupon No. 7.
. 2Srii June. 1882
MannfactniCTS '■• ■

’ Hanover Limited

Agent Bank

LADBROKE INDEX
€3ose 549453 f -3).

THE

EMPLOYMENT RTT T,

The Financial Times published a series of articles
during March and April looking at Norman Tebbit*s
Employment Bill. These articles have now been
reprinted as a booklet and are. available at a' cost
of 50p (including p&p).

Please send cheques or postal orders payable
■ - to Financial .Times to:

Nicola Bantam, Pnblicity Department
Financial Times, Bracken House
10 Cannon Street, London EC4P 4BY

Registered Office: Bracken House, 10 Cannon Street
- London EC4P 4BY

Registered in England No.. 227590 : W

PubKc Works Loan Board rates

Up to s rsf i 3 j

Over 5 . up to 6 ..:... US

Over, 6 up to 7 . 13 } - 13 }

Over 7 , up to I-; 13 | 14

Over t, and up » 9 14 14 }

Over ; 9 , up to 10 ' I 4 i ' 14 }
Over . Z 0 r ' up to IS 141 14 }

Over 15 , up to 25 . 14 J 14

Over 25 ... ..14 14

EffeeUve June 23

Quote loans repaid

by BPt At maturity
14
14}
141
14}

14}

14
14

• Non-quota loans A'

lyEJP*

14}

.14}

14}.

14}

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14}

ill

■is

14}

14 }

repaid

maturityS

14}

.14}

141

14}

US-
14*
14}
141

iota loans B a re 1 per cent higher in each case SLn
non-quota loans A. t Bgiai instalments of principal. +
by half-yewfy wmulty <fi±ed equal half-yearly paymenta toSSST
ggggl aagtogV I Wilt hidf

HNANCE FORINDUSTRYTERM DEPOSITS:

Dqpc^rfjXO(X)-0O^)OQtecqitedforfi^ten)B<f3^m 1

■ T ean»(ya ai^ 3 4 8 8 't o q

m.-te.at' hi §

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Financial Times Monday June 2S 1982

UK PROPERTY III

Inflow remains high despite slackening of pace

PROPERTY Is an illiquid invest-
ment It follows that the on-
debate about whether
pnme property investment yields
should be. say, a percentage
point higher is not frequently
tested in the market place. And
when people are buying more
property than other people are
seeing, it is unlikely to be
tested at ail.

In April of this year the
Central Statistical Office issued
figures showing that institu-
tional investment funds, in 2981
-at least, were still on the big-
gest property spending spree
yet recorded.

Apart from share acquisi-
tions in property groups, the
UK pension funds, insurance
companies and unit trusts last
year spent £1.95bn on direct
property investment, a rise of
about £LQOm on the record 1980
level.

Together with other institu-
tional buyers of property, the
combined total reached £2j»bn
against £1.9bn in the previous
12 months. The CSO statistics
showed that the pace was slow-
ing down in the final months of
last year; but it was narrowing
development margins, rather
.than any substantial weakening
in the funds* desire lo purchase
prime property, which sug-
gested that 1982 might see. a
less buoyant investment pattern.

A month later agents Healey
fc Baker, in a commentary
accompanying the June. 2982,
edition of their prime com-
mercial property yield graph,
said flatly that yields had main-
tained the same levels reported
three months earlier— 34 per

cent for shops, 4$ per cent for
offices and 6| per- cent for
industrial property.

They emphasised that for the
purpose of this graph prime
properties are those located in
the '* very best ” positions of
towns of the highest Investment
calibre. They were of the most
marketable size and style, let
to good and substantial tenants,
on leases containing modern
covenants, and with good rent
reviews.

Their view was that high
quality commercial properties
were still properly valued on

INVESTMENT

WTUiAM COCHRANE

those yields and that there was
a significant market at these
levels.

Nobody, and that includes
Healey & Baker, is ignoring the
arguments against present yield
levels. In the post-war period
the growth of institutional
investment funds has been out-
standing in real terms and
while some commentators ex-
pect real growth to continue
at least until the end of. this
century, one cannot escape the
fact' that other avenues of
investment have widened, and
In some eases become signifi-
cantly more attractive.

The relaxation of exchange
controls after 40 years- has
meant that very large sums have
been invested overseas. For

various reasons, especially the
hardness of the . dollar.' UK
enthusiasm for overseas invest-
ment might not currently be as
buoyant as it was initially. But
the overseas option exists and
the increasing sophistication of
investors suggests that it will
continue to thrive.

Still in the U:S., the persis-
tent ‘ efforts ~ of American
' property men to sell their pro-
duct to UK and other European
investors may have come at a
.. bad time in cyclical terms; sell*
ing before a . recession, really
. bites, as. it has In certain areas
of the U.S. pru petty market, is
likely to leave ji sout taste.' But
..the message that fixed invest-
ments. in the UJ5. are currently
yielding more than 8 per cent
in real. terms and compare with
something of the order - of
between 2 and 1 4 per cent in
this country is still likely to be
remembered in the medium
term.

- Index linked bands are cur-
rently designed to show. a real
return of 2 per cent probably
a percentage point and a half
below actuarial investment re-
quirements. But who knows
what ihc Government will have
to borrow in future and what
that will do to the real return
on future index linked issues?

The tendency towards more
aggressive management of
investment funds offers little
apparent impetus to a sector
in which rental performance,
the basis for growth or decay,
has been frankly disappointing
recently.

Healey & Baker turn the
argument on its head, quite
fairly, by noting that in contrast

to an Index-linked gilt, the
opportunities for the property
investor go far beyond passive
acceptance of the performance
of a stock in another’s hand.

He has 41 the opportunity
actively to work his investment
by buying up or down within
the tenure pattern, perhaps to
refurbish or redevelop and the
fruits of positive management
are very real,” they say.

However, the logical exten-
sion of that argument is that
the distinction between prime
and secondary property invest-
ments will eventually become
blurred; and secondary yields
have definitely risen in the
period of this recession.

On balance the dangers
within the property industry
itself- seem more powerful than
outside attractions. According
to HtUier Parker’s latest rent
index 3t the end of May, average
rents had fallen still further
behind inflation over the pre-
vious six months and were then
rising at their lowest rate for
five years.

Even office rentals, which
broadly succeeded in keeping
in touch with inflation over the
last two years, are now declin-
ing sharply in real terms. The
situation was not seen likely to
provoke tfle type of mass deser-
tion which spread through the
ranks of fund managers in the
early 1970s but at the same tim>
there were clear indications that
properly might well be entering
a less fashionable phase from
an investment standpoint

Would prime yields ease up-
wards in that case? Perhaps not.
But the definition of what is a
prime investment could narrow

'•SOURCE l HEALEY & HAKXR

ime Commercial
tmertv Yields

,2&ZConsols

Base Rah

Industrial

' I i

Offices.

4* ; V

Shops

1971 ’72 ’73 ’74 *75 ’76 ’77 ’78 ’79 ’80 ’81 ’82

. ■ #tnauffictant Marks* to FiUaMM i a Pattsm

still further and as prime be-
comes secondary, the average
yield on a formerly prime port-
folio would rise, which amounts
to the same t htog -
One seeming paradox in all
this is that some property pro-
fessionals are arguing that now

and in the foreseeable future
the definition of prime should
be more rigidly enforced and
followed — while others are say-
ing that the secondary market
should be more closely analysed,
and perhaps sub-divided so that
the top end of secondary can

put forward a case for institu-
tional acceptance.

more important part in property
portfolio investment and

Whatever the merits of that management than it has done in
particular argument it seems the past
increasingly likely that per- The latest entrant into the
formance analysis will play a performance stakes is St

CONTINUED ON NEXT PAGE

£7 Billion

is the value of the

Economist Intelligence Unit
U.K. Property Performance Index

This jndpy which is based on the aggregation of the actual
property portfolios of Insurance Companies, Pension
Funds, Superannuation Funds, Managed Funds,

Property Unit Trusts and Property Bonds, establishes a
direct bask for the measurement of the performance of
property and is the largest index published in the U.K

^ This survey now includes a

U.S.A. Real Estate Performance
Index — by arrangement with the
National Council of Real Estate Investment
Fiduciaries and the Frank Russell Co.

Available on request from:-

MICHAEL
LAURIE £r
PARTNERS

Frtzroy House,

18-20 Grafton St v London W1
Tel: 01-498-7050 Tlx: 22613
Prestei: 224488 RefcKMP

500 Park Avenue, New Ibrk,
NY10022, U5A.

Tel: (212] 6880933 Hx: 5200018
Ref: NP

BEfiTgg

Beivoir House

astleigh

Hants.

Self-contained
Office Building

• 22 Car Parking Spaces
0 Central Heating
$ Lift O Lighting • Carpeting

CHANGING politicians and
changed conditions have over
fte past few years resulted in a
plethora of grants and incen-
tives available to companies in
various parts of the UK. So
much is available, in fact, that
potential recipients of such
help have to struggle through a
veritable maze to find out just
what benefits they are entitled
to.

The biggest change in the
grants and incentives system
came about as a result of the
1979 General Election when the

To Let/For Sale
I 21,500 sq.ft

1 WITH FULL VACANT POSSESSION

INCENTIVES

DAVID OfURCHIU.

ones Lang

BRENDONS

havered Surveyor sy'-
01 493 6040

.19. Market Stratr
EaStleicjh. Hants,

VICTORIA SW1

To be Let

16.000 sq. ft. air conditioned offices
Lift carpets, partitions, telephones, telex,
cut parking.

Chartered Surveyors

01-734 8155

Conservatives came to power
and withdrew the map- of
assisted Britain. The change
meant feat instead of half fee
country receiving help of some
type, help was concentrated
where it was thought to he
needed most.

In addition, the Government
widened the gap between what
could be obtained in special
development areas — those parts
of fee country which have fee
greatest Government assistance
—and in other areas.

The consequence of these
changes will mean feat from
August this year fee assisted
areas will cover a quarter of
fee country in geographical
terms. Until August certain
interim arrangements have been
in force.

Charting your way through
what is and is not available
would be impossible without
fee aid of various governmental

and semi-autonomous bodies to
help.

Such groups include:

• The Development Coranris-
ston: this organisation aims to
encourage Email industries and
community development in
rural areas. It is responsible to
the Department of the Environ-
ment for the granting of
advances from the Development
Fund, which is voted annually
by Parliament. Resources are
concentrated on those rural
areas which are particularly dis-:
advantaged, called Special
Investment Areas.

• The Council for Small Indus-
tries in Rural Areas is funded
by fee Commission and it is
through CoSIRA that loans are
available to 'companies in
assisted areas and special areas.
Discretionary loans of up to
£50,000 for building and/or pur-
chase of plant and equipment
can be made subject to. certain
conditions.

• The British Technology

Group, which will invest in com-
panies involved in , technical
innovation as well as fee more
traditional industries within fee

Assisted Areas, ■ madidy in fee
north.

A considerable help for busi-
nessmen seeking preliminary
information of what- help is
available- arid where to go tor
advice • is Say’s Guide to
Regional Finance for Industry
and Commerce. (Published by
Kay's - Guides. ChurchfieZd
Road, Chalfont St Peter, Buds.)

Mr Donald Black, managing
director of Slay’s Guides, em-
phasises the need tor financial
-assistance for industry -is order
to get results. Xoeal initiatives,
often started by councils and
supported by local business, can
be far more effective in creating
viable new jobs fe*n anything
else," he says. '

“■ Bat there is bo substitute tor
even limited loans or grants to
get business , started or to en-
courage others to come."

- In the assisted areas. Elay's
Guide lists a. number of financial
incentives available. These in-
clude:

• Regional development gr a n ts :
depending on fee status of fee
area (such as a special develop-
ment zfrea). grants tor- new

assets and production premises
are available.

• Selective firamdM assistance:
this is designed to bring forward
worthwhile projects . which
would sot otherwise go
ahead and which provide more
productive and secure, jobs.

0 Government factories: rest
free periods on certain Govern-
ment-owned factories. . v

• Product aid process derotop-

m*»rrt a-ftwrip: this assists COO

panics with development costs
to bring new products a nd pro -
to the point of commer-
cial production. ■

• Microprocessor appneation
project tiizs assists with the cost
of industrial training courses de-
signed to train engineers- in

' the use of microelectronics.

- On top of all feese;£jants and
incentives, the Government has
.also set up enterprise zones in
fee major cities. These are areas
where local authority regula-
tions axe kept to a rirmtomm,
planning decisions are speeded
up, and a number ■ of finan^al
incentives offered.

The inner cities h»* secured

a. great deal of attention over
the past year as a’resntt of fee
street riots of last-summer. Such
attention is probably long over-
due, since in the 1660s and
1970s, the trend was always to-
wards giving aid to the regions
rather than fee decaying inner
dties themselves. ,! :

. .Many of/fe© .teesj^.govern-
iDeDt-tospfoed initiatives for fee
inner cities have appong .from
the FSnancial iretitatioos Group
(FIG). This group, of 25 people.
Seconded tor one year from, fee
banks, -Oily M ta rth n s and.
several private, companies, was:
bnoaght together by Mr Michael
HeseSttae. MSb Environment
Sea®tay.

Ttoe - major hrttistive to
emerge from fee FJG think tank
has been a £70m grants scheme
deeded to .attract private
investment tote fee toner dties.
Based on - a U.S. bousing and
urban development project, fee
initiative m. intended to link,
pubinc and .private sector funds
an fipetifle projects. Under fee
scheme, local authorities to 43
of fee most deprived areas to .
Knehmri and Wales wffl be

a?toed to pten fewestenent pro

:je<fe to'TCO-operatfqn wife , fee v

private sectnox. •' :

The mala area of .fee Ckrtton.
nwnrt direct teraHnatnent. .to
toner city ftegebaratiaa to-fend,
tog tfctodgh' fee Urban Pro -
gramme ib whadl fends ftreefin. -
cited towards saner. cSty-are*,
wife .partastiar 'aapfcqaft on

: 1
•-'.tST’-i:*

This year fee • Urban -ftp-
gramme is to be increased from .
£21am to. £270m wife serial
emphasis 1 on' voluntary' sector,
capital -project rather (tea
revenue provisions. “ • ■ . ■■ •

- . Another plank of aW tor fee '■
inner cities ' comes from fee
focMaod devetoproaot Schemes -
for London. ' and. Xweipoot-Two
development capmis 1 far
Lood oh and Meiseyside— were
set iq» in iflgff d&torighfeey are
only nqw getting into ffcto
stirtoe. Tfae ’ leodoo Dbdkfeed
1C)eiveh}praent Corporation; to *
pnrtkn&i* fc advertising beans!?
09 television and in fee Press 1
about fee fact feat such & body »
exists and- is very mneh to
buatoess. - ~

Even the prime areas feel the pinch

Ll.-ttSfr

r V. -*i -i2a

? *V.‘- • t

Brook

ADJACENT M25

BRSteticn&MgcrShoppngGaTtre

Hammersmith..

Excellent Headquarters
OFFIC E BUILDING
TOLET

6,100 Sq ft approx

V Excellent Corporate Representation
* Fully Fitted to aHigh Standard-
“t Car Puking available

excellent

MODERN
OFFICE
BUILDING ‘
55,000 Sq. Ft.

\fay Ecnnorracaiat£830pe'sqit induave
cf Rates and Ruming Crists

TOLET

w BYE EAST SUS

MODSBM SINGLE STOREY IBCTOKY PREMISES

Might Divide

47,200 sq.ft. on 3-7ac«s approx,

TOR SAKE FREEHOLD

THERE IS nothing like a bad
patch in fee property business
to press home all fee old
truisms about the benefits of
quality and location.

When the going gets tough
fee lettings, investment and
development markets inevitably
gravitate towards prime and it
is therefore hardly surprising
that fee City of London has
tended to hold its own rather
better than many other com-
mercial property centres.

But fee City cannot claim to 1
have escaped the full repercus-
sions of. a recession which has
driven deep into most sectors
of fee property market and
affected all regions. Though
fee most recent indications sug-
gest that fee decline in City
tenant demand is over and feat
fee search for fioorspace is
again picking up. there has been
an undeniable decline in the
volume of space take-up.

. The central core of fee City
has remained lately immune to
fee market conditions -around it.
wife tenant demand remaining
reasonably firm and available
space remaining traditionally

limi ted _

Last year take-up dropped by
almost 20 per cent to a little
over 2m sq ft against fee 1977-
1978 peak of 3.7m sq ft. Any
significant improvement this
year looks unlikely, despite
earlier suggestions that fee
figure could rise during 1982
to over 3m sq ft

Demand is, of course, only
one side of the equation and the
predominant feature of the City
market in recent months has
been the rising volume of new
space coming on to the letting
market The new supply of
office space, comprising new
developments as well as exist-

ing fioor sp ace, appearing on fee
market is likely to reach around
3m sq ft tens year, against
3.3m sq ft in 1931 and 3.7m sq
ft m fee previous 12 months.
A return to a balance between
supply and demand might still
be some way off.

Richard Ellis recently
reported that in the three

CITY OF LONDON

NTOMB. CASSELL

months until the end of March
a total of 1.5m sq fit of office
space became ayafiablfe in the
City for letting, twice fee
amount of fee preceding three
months. The supply of space
was st a high level for most
types of office -accommodation
but particularly so/in the case
of new developments.

Total availability of office
space has been running at over
3m sq ft, although around
one-third has not been imme-
diately available for occupation.
There are substantial numbers
of new schemes yet to reach
the market and as a result the
overall supply and surplus
positions are expected to
remain fairly constant m fee
medium term.

The impact on rental levels
has been predictable. Rental
growth last year within the City
ranged from between 7 per cent
and 10 per cent wife fee best
located prime buildings manag-
ing to register growth of any-
thing up to 15 per cent. The
market will consider itself

fortunate If a similar pattern
.is repeated this year. - •• .

Most rental increase? being
recorded relate to modem; air-
conditioned buildings— or those
refurbished to a high standard
—whereas many offices are not
managing to show any evidence
of rental growth.

As for asking rentals, top
rents in fee main financial area
are now being quoted by the
agents at anything up to £28 a
sq ft a figure which in isolation
compares favourably with
office centres like New York
and Hong Kong but which, with
the addition of rates, represents
.what is arguably the most ex-
pensive office accommodation in
the world.

• Rates in the (Sty of London
can now mount up to a figure
equal to more than half fee'
rental per sq ft, while local
taxes in locations like Hong
Kong and New York axe. only
likely to represent an additional
10 per cent loading.

For many tenants, however,
the need for a City location
continues to override the cost
factors involved, although it is
likely that the trend towards
decentralising those parts of
any financial operation which
are location-sensitive will con-
tinue.

As for the so-called “City,
fringes,” there are two clear
views about their current state
of health. The conventional
wisdom is that given the
market’s present weaknesses,
the fringe office locations —
currently fee .scene of a sub-
stantial development . pro-
gramme — will find it hard to
attract tenants and even harder
tp attract firm rents.

The alternative view, ’ not

merely expressed by those with
a direct interest in fee
fringes, . is* * that fee attraction
of considerably lower rentals
(though not necessarily- tower
rates) on the City’s doorstep
is actually improving - letting
prospects. Agents handling
some of the new schemes await-
ing tenants might beg to differ.

So what impact is fee present
state of affairs haring on fee
in v es t ment market for Cily
property? Tfae answer appears
to be none whatsoever. For it
is in terms of investment that
the City market looks its least
vulnerable.

'Whatever, fee short-term
prob le ms of fee local market,
there remains an underlying
confidence in fee continuing
ability ' of City office property
to provide good capital and
rental growth. •

There is little doubt rifeer
that fee weaknesses now
evident in fee office market can

On the Instructions of the Internationa! Mfcdftatfon Centre

OAKENHOLT OXFORD

A VICTORIAN COUNTRY M AI^SlbN l^US SITE WITH
PLANNING CONSENT FOR 201 STUDIO FLATS

Inflow remains high

CONTINUED FROM PREVIOUS PAGE

KELVIN AVENGE

BEDFORD

SINGLE STOREY IND/PREMtSES S LAND
SO.GOOsqJt on 5 acres approx.

LEASE FORSALE

WEMBLEY MIDDX.

WaH&pppedMDdenifadustrlalBLfikfir^

142 ,000 sq. ftapprux.
FORSALEFREBHCLD

38 Button Stint
Mayfair :

London WBT7m

01-4998931

ftadOBotednEa

Quintin, where Stephen Sykes
moved over from Richard EUis
last August to set up “Compas”
— short for computerised pro-
perty appraisal system.

At fee outset St Quintin
moved to nullify the instinctive
objections of old hands in the
property market. “ In recent
years,” they said. “ emphasis
has been placed upon measuring
only fee short term performance
of properties.” Like the oid
hands, they felt that property
performance over a short time
; scale can be potentially mislead-
, tug not only because of extreme
• variations in lease structure

between one property and
another but also the inherent
degree of ** estimation ” involved
in the assessment of open-
market values.

So Corapas is a long and short-
term system. It has cost a lot
of money, and St Quintin felt
if had to spend it — not only to
attract sew clients but also to
retain those it already bas on
its books.

One inescapable fact about
the rise of research ’bnd analysis
in a particular investment sec-
tor-witness the UK equity
share market as stockbrokers
developed their research depart-

ments in fee late 1960s and
early 1970s — is feat fee tail can
begin to wag fee dog.

As research became increas-
ingly sophisticated, analysts
felt the need not only to make
“sell” recommendations based
on the intrinsic value of . the
slocks they were looking at but
to show as well their courage
and publicise them.

We are a long way from that
stage in fee UK property mar-
ket. But if it does happen.- even
in some degree, it can only be j
for the long-term health of the j
Industry. • j

A VICTORIAN MANSION itt.h* 23 aciM dm to Oxford. Tho House la
In wcallMt condition throughout and tha accommodation mapnaosi
Spacioua RECEPTION HALL ORA WING ROOM. LARGE LIBRARY/
CONFERENCE ROOM. SECOND CONFERENCE ROOM. DIN1NGAOOM,
READING ROOM. OFFICE DOMESTIC OUABTERS. KITCHENS,

STOREROOMS. 22 BEDROOMS. 7 BATHROOMS Fin Dotaetor sysMma. Full ■
Central Hosting. Modern Fittings TELEX. 4 CAR GARAGE. Hard Tannla
Court. 23 acres of Gardana.fifd Grounds. Detached Lodge yritli 2 Bedrdomi,
Reception Room. Kitchen. •Hi K hr w m. A range of outbuildings providing
resrdentiaf Accominedaiieii for 100 person*. Previous consent tor -
Cantarenea/Traming Castro. Ptana of prop osed 201 Studio Flats available
lor inspection at Agents o&ces. Of inters** to Developers, or Hotaliars and
CompeniM seeking Management Trshwn» Centro.

OFFERS INVITED FOR THE FREEHOLD

SotoAgwts:

Buckell and Ballard

68 COW MARKET. OXFORD (0885) 408M

ON THE INSTRUCTIONS OF

22 KINGSWAY

LONDON WG2

50,000 SQUARE FEET

SUPERB OFFICES TO LET

WITH CONFERENCE FACILITIES AND PRimTE CAR PARKING

APPLY SOLE AGENTS

■*6'

A • ' , j

and will be quickly overcome
once th6 economy shows' signs
of iny significant, upturn. Con- |
fidence is the key .wurd andthe f
City market could; as m fee 1
past,' experience a> -rapid

increase -in .demand- once - fee
economic environment changes.

Some agents are already, i
reporting a marked upturn jn '
interest and actual lettings. Just
as significantly, - fee time taken
by. . occupiers to decide on
taking space how appears to be
shortening again, a - hopeful
indication feat activity, is set
ta pkk up. „ Levels of take-up
in fee early months of this year
were reported- by some agents
to htevd. risen to their highest
level stoce eariy in 1981.

There-remadns a large overall
space aozjpfczs, however, and the
market is . nnlikely to return to
fee Type^of rental performance
recorded before fee .. latest '.
downtorn until the backlog is '

A .r-

. L* . \i.n»

■t ‘;.,-
V-. 1 v,

77 GROSVENOR STREET, LONDON W1A2BT. Telephone: 01-6297666

afcoGty erf London, Edinburgh. Australia. Belgium, France, Gcmnny.Holaiid, Italy, Spurn. S toa M «d Landaus- AsocMtH fae.-U.SjL'.

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Financial Times Monday June 28 1982

UK PROPERTY V

Institutions keen to invest

despite today’s weak rents

* p SS erty Bcec l is ««««. «nd c iot# by toe ring

SJL^KISE «mtra<hc- road Mid the Ml sothat facta?
hJ?« J!i JSEi mo ” e P t - Recession tag customer* in fay car*
has flattened, and in some cases simple.**

reversed, the trend of leap- Chris Phillips of Healey &
Iregging shop rents seen in the Baker takes a more sanguine
late 19 f Os. yet institutional in- Mne. He feels that Hie decline
wwtment demand seems tasati- in Oxford Street rents, more
.*®L . severe between Oxford CBnaos

There is a decided decline and Tottenham Court Rood to
ta demand for space " says Mike the east th* n in the western
Biddle, a partner in agents God- hal * of the street has stabilised
dord and Smith. " Fluctuations dur *ns the past six months,
in retailers' turnover have made agrees that reve r s e pre*

them very wary, unsure about mJnms— meaning that existing
whether or where to expand.” tenants pay their aoeceason to
But retail development carries take m a lease-have been
on apace. paid there but he does not

HHKer Parker’s 1981 supple- thinlc rents we likefty to
ment on British .shopping deve- fihow a further decline.
Jopments. containing details of “ Demand for shops in
shopping schemes " of over P 5Eft> ? d " Street is extreanejy
50.000 sq ft gross opened healthy," he says. “We are
drains the year, noted That 33 aeei ^S ■ lot otf interest from
new shopping schemes opened mult *P les . and good attractive
in 1981. with a total floorspace. smaller companies other than
of 4im sq ft gross. This was the Wie . ® DaH fashion and Jeans
highest annual total since 1978 frtajlers were so prev*-

g mgSon aqtaue foot grow

SOURCE' HILUBt MAKER RESEARCH

Total Floorspace
Opened in Schemes

1072 |9?.I 1974 1975 I97fi 1977 1978 1979 19&I l«JI|

and represented a “ consider- ^ 2* late 19 ^°* 1 — ■ /

able " recovery over the 2 9m ** convinced that

sq ft opened in 1980. ™ ’ conventional High Street top shops maintaining theta after which the - emphasis

Put-tin „ fhw> jnnjnmiiu «««. retailers want to corns ta — at pole position on a yield of switched to out-of-town or edge-

flictin? wSfc into «>« «<•* ml » per sent -fl: ha to be of-tmra development Now. be

Is helned hv 94 +?tk» ^ Yet it is now, generally remembered that the institu- says, the accent is not on

is netpea oy nmng them Into *x .< ******* h.,t «««.

j iruju], urem nuo speaking, tfiat the lettings tlons' definition of " prime “ is regional centres but con-

■ — — ■ — ■ ■ ■ — — .. market is flat. The impact of very tight indeed. venience (in other words, every-

recession on consumer spending . “ In shopping ” say Healey *»y) shopping with foodshops,
SHOP PREMISES and of cost inflation including and Baker, “yield rates are chemists, post offices and:

higher rates on profit znMjgros justified at their present low stationers ta the van.

WILLIAM COCHRANE £ av * n^^ that many retailers levels where the property can T* 1 ** and other evidence ,

have found themselves with be expected to show real rental woudd seem to suggest that

property worth more than their grqwlh. Real growth can only future town centre retail de-

trading operations. flo v, {mtn increased spending velopment will he relatively

r . Department stores groups, nower attracted to that sho^ * ma11 “d designed for

the proper time frame, espod- narticnlarlv. have seen the 'SZT sneeiaitei trariinv

WILUAM COCHRANE

•Jf a»d letiiags tSSFS'&w *»?&*£■ fc^ ,t SS p X lt pSSSti» be the odd

r* « — ZSSr “*»■ BTuWS ft « TTIB

q IK/"* «»tes: inability to get anywhere L T ' . MWh , t . form of detailed planning per-

prospecta; and by seeing deve- near the same tbrougfipm as the . a . ■ . *^ at 15 sn ra, for : ts ne £ centre com-

lopment in the context of a newer self-service specialist S.‘ W ®«f r ’ _ xe fi bining shopping, commercial
dynamic and restless industry stores; inabihty to reduce staff- “ no .* predictable then the and j n a £ 40 m re .

which, however- it has revoia- tag levels. AH these factors shopping centre should not as < 1 ^ 000 ^ programme for the

tiomsed distribution over the have brought about an exodus a whole be^ valued at the prime St area 0 f (jj as u OW>

past two decades, still dearly of famous names like Swan and y 1 ® 1 ® rate. Co-ordinated by the "Scottish

feels that there are areas where Edgar in PiccadiHy, Whildeys Just as the definition of prime Development Agency (SDA)
Its evolution can continue. ta London’s Queensway, Lewis’s seems to be changing, so is the this scheme involves 260000 sq

The vulnerability of rents to in Birmingham and R and W content of shopping centre ft of retailing space up 55,0W>

recessionary and other infill- Forsyth m Edinburgh.

development. As far as sheer sq ft from the area for which

ences was demonstrated The massive retrenchment at size jg concerned, most of the Ihe SDA has already received
sharply, and rather sadly, by Woohvorth’s. whose latest plums would seem to have planning consent; 750 car park-

Hillier Parker's latest rent tranche of store sales is espec- been picked. Hillier Parker's ing spaces on that part of The
index m May, which saidthat ted to raise, over £90m, is 1981 analysis illustrates toe development; an he rink.

rents in London’s Oxford- another cautionary tale „ Jor decline in the average size of restaurants, exhibition and
® t ^ ee l 0 were ^ en 5^? d - ul ^, at £P lenC t*l tenants. There are newr schemes over the past five other entertainment facilities.

oriy 58 per cent of their May those sayihat Woohwrlh yea^^fron, 232.000 sq ft in Roger Lucas, the Teiail de-

^ M Ss™? 1101 1 *[ ntten 1977 to 137,000 sq ft in 1981. velopment partner of Richard

Oxford Street ts still still has massive turnover, a lot ' oi ^ nr . , . ERis who has just been made a

regarded as the premier shop- of traffic, the fitting out and X ^ ° ot< rL ^ trustee of the International

ping thoroughfare in Western general appeanmee of some of ^ .SfSSJf of Shopping Centres.

Europe, if not In the its shops i^now excellent, its sho^ 180 centare St EnTh^nS a s a

“f- * ** r- , "J -7- _J.|, -r A . |A _ ft Lilt: OL JjIIULU «■! 1 UC as a

world. Its rents peaked. in 1979; product range is ^ood and its with sales of over £ 10m. Only in ^ arm fQT ci aggow hj
but. since 'then, London'^ counter staffs lot fetter than one-third of 1981s ^nings terms ^ j nner regenera-
tourist trade has been hit tv it used to be. If that is so, were in these top centres, the jj on

the fluctuauiig pound. There newcomere urigj be ttrinkmg remainder being in suburbs and This is not just self-jusfifica-
has been concern too that that it wnrfd be better to wart new towns. In the penoj tion. even if there is local argu-
Londoners, who once gave the until the recession has fuHy 1965-1978 the proportion of -new jn^nt a^boui the merits of the >
street a stable base trade, have run Its course. . schemes in top centres was 43.5 scheme. Capital and Counties’

been drawn away to new subur- So when Healey and Baker per cent. Eldon Square development in

ban shopping centres. talk, about the “seemingly Mike Biddle puts bis finger on Newcastle is said to have done

“ Oxford Street is difficult to insatiable ” demand for high another difference, the retailing a tot for the city; and. as Mike
get to,” says Mike Biddle. “ If quality retailing investments in “mix" of the schemes which Biddle puts it: “one amazing
you live in North London you introducing their latest prime are being built. He sees the thing about retail development
are likely to go to Brent Cross, commercial ' property yield early 1970s dominated by major is that it can work in places
which is a covered shopping graph — which, incidentally, sees city and town centre schemes, where nothing else does."

Long wait likely before market

confidence is restored

NEARLY everybody has a
favourite — or perhaps most
chilling — instance of Britain’s
industrial degeneration.

One case concerns a modern
steel finishing plant on the nor-
thern outskirts of Sheffield
which is up for sale because of
the transfer of the finishing
operation to a site in Man-
chester. It would have seemed
incredible even three years ago
but the 300.000 sq ft Sheffield
plant could be converted into
a ten-pin bowling alley.

These proposals are tentative
and may weTl come to nothing.
In any ease it is quite possible
to over-stretch . the argument
which says that great tracts of
the national industrial base are
to be turned meekly over to
leisure use or abandoned com-
pletely- . . .

And vet. best estimates snow
there is a major overflow of
surplus industrial and ware-
housing properties on the mar-
ket. -

■ Kng and Company, one «
the agents which prepares regu-
lar calculations of available in-
dustrial floorspace, estimated
last month that naturally no
less than 159m sq ft of space
was unoccupied. * _

This shows that the un-
occupied rate is now treble its
level in the early monOis of
1979. the point at which tiie
recession may be said to have
started in earnest. .

The problem for potential
occupants’ agents and investors
is to decide how much of the
available space would be con-
sidered obsolescent anyway, how
much space will be required

when industrial production is
shown to he on a firm recovery
path, and how much space is
now on the market after manu-
facturers have shed the surplus
fat carried from the boom years.
Put crudely, the property
market has to decide the extent
of permanent industrial re-
trenchment or what Is the long
term effect of becoming leaner
and fitter.

King’s afnalysts was worrytasi
not least because it suggested
that the tentative signs of
recovery noticed earlier fihis

HiBUSTRIAL

RAY MAUGHAM

year seem to have disappeared.
Industrialists, like Sir Arnold
Hall of Hawker Siddeaey, be-
lieve demand for manufactured
products is actuaHy picking up
progressively, but the upturn is
slow. And tiie lead times
inherent in what the investment
purists would describe as an
imperfect market strongly sup-
pose that a pick-up demand 1 for
aH types of property wfii not
become apparent until quite
Jate in the' cycle.

Landlords and owner-
occupiers will have to wait a
long time before the industrial
property market regains its
confidence. The best that can
be said is that the gloom is not
completely pervasive, but the
brighter pockets may be gather
isolated.

The most .
powerful piece,
iifinforaiatiqom.

shop property . /

The outlook is stiH dull for
multi-tier purpose-built indus-
trial space in the oid textile,
shipbuilding and steel towns m
the North East and North West.
Recession may have done no
more than accelerate their
demolition. But the com-
paratively new industries in
plastics, light engineering and
the rest have also suffered
badly and freeholders in areas
of traditionally high etoplby-
raent and income per capita are
making some painful adjust-
ments.

Their response has . been
necessarily aggressive. Big
plants are being split to attract
groups of small individual
tenants. Rent free holidays are
on offer ta several previously
bustling locations. Agents are
on fat incentives to dispose of
unwanted space — handsome
new cars are an example.
Above all, the companies are
forming new property opera-
tions to market premises.
Courtaulds and Guest, Keen
and NettIe£o*ds are just two of
the large quoted groups which
have adopted this .approach.

Various locations are losing
their desirability to investors
and the broking firm of Hoare.
Govett defines a geographical
line which “is progressively
bang dragged southwards,”

lhe firm says tills tine might
" extend roughly between the
Wash and the Severn. This sug-
gests tfiat capital values are at
least being maintained in the
Sooth East and along the West
of London Corridor as it fans
out towards Bristol.

Others are not sure. Another
broking firm, Sdmrnr & Coates,
says It has been told .by 41 several
leading agents that there is now
a major question mark over
prime industtiaS.. ■■yields even in
prime' toeathms in the South

Chas E-Goad Ltdv

Salisbury Square, Old Hatfiel d.

Herts. AL95BE lei: Hatfield 71171

That question majrfe extends

to rental growth projections.

•Etas has probabiy been com-
pounding at' about 11 per cent
annually over the past five years,
in the prime sector which has
failed to match' tiie rate of
bttalding coat inflation over the
same period. 1

Rewtri growffli certainly seems '
to have been tulfaqr off. Richard

Eilis, in its 1982 survey of the
UK property market, found that
rents in toe most sought-after
areas of the South East —
namely North West and West
London, and further westwards
along the M4 — rose by some 25p
to between £3.75 and £4.00 per
sq ft But in the previous 12-
months accommodation of this
type achieved a 75p sq ft ap-
preciation.

For investors Industrial yields
are still about 6i per cent for
prime rack rented properties—
a tolerable situation so far.

On this basis, yields should
have increased 9.75 per cent
annually' to match alterfeative
long-term investment such as a
suitable government stock. Rack
rented prime rental growth, as
Simon and Coates illustrated
recently, has been 10f per cent
over the past five years. So far
so good.

Secondary properties, show-
ing an equated yield of 8} per
cent according to the Jones
Lang Wootton Index, need to
show 7} per cent annual growth
to cover the opportunity cost
of money, and have actually
turned up 12 per cent annual
growth over the past five years.

The relationship between
current capital values and ren-
tal projections looks increasingly
finely balanced although there
are pockets of interest such as
the high-tech parks around Lon-
don’s ■ northern and western
perimeters.

At the disadvantaged .end of
the scale, the Government’s
Enterprise Zones are in place
and appear to have been well
received by both local councils
and tenants. At least one of
the main objections has been
withdrawn now the rones are
clearly sited and potential occu-
piers are no longer confused as
to which inner-city areas enjoy
the rates and administrative in-
centives.

Meanwhile, industrial Britain
is still on the ropes. There is
a big, disused site in Llanelli
used untfl recently to house
two. modem .electric arc fur-
naces . and melting equipment.
The ‘ owners say it is close to
the., coast and would make a
pleasant holiday, camp or vil-
lage. Any offers?

FREMBES—PREMEES

JLW maintain an extensive, computerised UK
property register.

vr-- V-

tw?— tfczipk- ■.-■ .• ;■ ,-T?

? •i-e'-'v «-*?. - • s r:

R V* V-.. . '• . ■ f

■.'££E?

.'■*1

'*! '• • Ailal

rasaesrctEiti

New

jobs are

coming up

in the nark

At Slough Estates we £|

are making special provision Jg
for new business, including 4H
the new science based
companies that will grow
most rapidly in the next
decade

The wide range of
buildings now
available are the ' •

workshops of the
80's, perfect for all
sorts of new.
enterprises both
large and small and
available at reasonable
rentals. -

The Industrial Park
concept that we have been
actively promoting is an exciting
idea, designed to provide an ideal

working environment
for new-technolpgy
■—■n r — — ^ - industries as well as
^ the old-established.

We are constantly
seeking new develop*
ment opportunities to
add to our 25 industrial
estates in the U JC
New processes wiH
flourish best in the right
surroundings, and as the
’ Mahon's leading industrial
property developers and
managers we plan to make sure
they are there.

If youx firm is on the movs^
talk to us. Together we can
make sure that Britain will
make it in the future as she always
has in the past J

SLOUGH

ESTATES

Helping Britain
get back to work

234 Bath Road Slough, SU 4ER Telephone: SIonghSTlTL

- i.

Tp«ionfcl*Iii«PV><KU|wjof

Financial Hmes Monday Jiin^ ,28 1582^

a move in the
right direction...

| Kush & Tompkins Developments ’ .
scheme is based on astrategic -
location, design flexibility, competitive
price and a high standard of
construction. All developments are
dose to major business centres and growth areas, with *

easy access to national trunk roads andrriotorway ■- - •
networks.

Rush & Tompkins Developments can offer you sound
professional advice and a wide range of properties -from .
shops and offices, to warehouses and factories.

For details,
complete and post
the coupon- Today.

Industrial
Commercial and
Retail Developments

Industrial
Croydon, Surrey
CuUompton, Devon
Chelmsford, Essex
Deptford, S. London
Edenbiidge, Kent
Greater Manchester
Hayes, Middlesex
Melbourne, Cambs. .
Merseyside
Newcastle- on-Tyne
Twyford, Berkshire

Commercial
Bromley, Kent
Raigaie, Surrey
Bristol, Avon "

Retail

Bromley, Kent
Reigate, Surrey
Walthamstow, E17
Bristol, Avon

David Reed, please send me

TjyT j o mfffl rmhon on *

□ Offices. Warehousing

□ Factories □. Shops

Location.

ITama

Postion.

Company-

Telephone.

Rush and Tompkins
Developments Limited

Marlowe House, Sid cup, Kent. DA152BP
Telephone: 01-300 3388^101 ex: 8963 3.L
Anrob^cf flBftrfian d'Ifc nc idiis Ctay pIc

J. TREVOR & SONS, 5B Grosvenor Street, London W1X ODD.

Telephone; 01-629 8151. Telex: 8955441— JAYTEE-G
WTH OFFICES IN MANCHESTER, SHEFFIELD AND THECITYOFLONOON.

UK PROPERTY VI

There are wide regional differences in the demand-supply equation for commercial and industrial property. ^

in this survey examine local trends add, in particular, the impact of foe recession on raatal lSvdte.

Market escapes worst ravages of recession

THE UK office market may
have escaped the worst ravages
of the recession which has so
badly mauled other sectors of
the commercial property world
but it canno t claim to be
-coming through totally
unscathed.

- Without doubt the office
market has run up against a
falling level of demand in all
but- a few highly prized loca-
tions. Rental growth as a whole
has been either non-existent or
rising at a pace well below the
level of inflation.

The recent Sillier Parker
rent index showed that in May
overall office rents were run-
ning at a level 8.2 per cent
lower in real terms than 12
months before and rising at the
lowest rate for five years. Rents
in Lerndon, one of the most,
resilient markets ini the UK,
could only claim to be holding
their own against inflation.

Understandably, there are
wide regional differences in the
demand supply equation but in
general terms it is the larger
office units that have been hit
hardest The letting market for
well located small . units, say
under 10,000 sq ft, is still being
described as fairly healthy in
all but the. most depressed
areas of the country.

Another developing feature of
the market is tire widening gap
between demand for well sited
modern accommodation and off-
centre or older properties. Any-
thing that is less than real
prime floorspace which in more
buoyant times might be snapped
up reasonably quickly, is diffi-
cult to move.

v Of course virtually anything
can be moved at -a price. But
so far, in all but a few isolated
cases* rents are not being cut

Yet holding asking rents dis-
guises what is happening behind
the scenes. Developers are mar-
keting their schemes well ahead
of completion dates which is a
clear signal that the market is
quieter and the competition
between developers hotting up.

They are also offering more
financial inducements such as
rent-free holidays and financial
assistance towards the tenant’s
fitting-out costs. It may not be
cutting rents but it is the next
best Thing .

Developers’ reluctance to
indulge in rent-cutting at this
stage in the cycle is understand-
able. They are hoping for an
upturn in the economy towards
the end of this year and into
1983, ’so" it might he ill-timed to
start giving ground- now haying
got through the worst part of
the recession.

Moreover, the knock-on
effect of rent cuts and the
severe damage that can be
caused to capital values — as was
so dramatically demonstrated
by the mid-1970s collapse — is
well appreciated. So' they will
grit their teeth and continue
to dangle other .financial, in-
ducements to try and win what
few tenants are around. ■ As
ever, the property agents are.
arguing that the upturn is wait-
ing Just around the corner.

Indeed it might hot take too
much of an upturn to inject
some life into the office market
again.- While it is agreed that
there is a position of over-
sUpply in most regional centres
— and to a large extent the
fringe areas of the City of Lon-
don are not quite the happy
hunting grounds they once
were for developere— there is
not the massive overhang of
.anlet floorspace that charac-

terised the -last recession. Once
activity' revives uhlet space
could .be soaked up relatively
quickly, allowing rents to climb
again. At- least that is what
the developers are hoping.

• Demand is clearly set by the
state of health of local industry
and commerce. The Govern-
ment's unemployment figures
tefl tte tale of where the
country is- being hardest hit by
tbe recession. Liverpool, for

OFFICES

TERRY GARRETT

example,- -is a very • depressed
market; while on the other side
of the country the North-East
is dull

One of .the few areas to : see
a definite slip in ‘prime office
rent levels is Newcastle. Lett-
ings have become very sluggish
and there is plenty of floorspace
on the market,: with prime
rent in the £4.00 to £4.25 area
and secondary property on offer
for as low as £ 2.00 a sq ft.

Tbe South East is, as always
the strongest region but it too
has felt tbe cold winds of the
recession and there are few
areas where there is ' not a
modest over-supply of accommo-
dation.

The City of London office
market is in relatively good
health. While it has seen better
times, compared to the rest of
the country its problems • are
slight During 1981 rent levels
rose by around 7 per cent to 10
per cent, taking top rate prime
property in the centre up to

around £27 a sq ft This year
a similar rate of increase' is
anticipated and by Christmas
the market could be thinking in '
terms of £30 a sq ft as the
norm.

In. the City rents have been
underpinned by the seemingly
insatiable appetite, of the
financial sector for floorspace, in
particular the banks where
domestic houses axe expanding
their international departments
and overseas banks codtimie to
enter London. .

Yet while the financial sector
continues to supply a. steady
source of demand; there is
growing evidence that other
sectors of commerce are
. reviewing their . • . needs for
expensive central 'Accommoda-
tion. ' There seems to be an
increasing flow ■. of companies
decentralising " ' their ■ . bead
offices.

Rising office costs have forced
many occupiers out. The issue
has come to the forefront on
the back of hefty increases in
rates, once only a.minor con-
sideration in terms of over-
heads. Figures compiled by the
Chartered Institute of Public
■ Finance and Accountancy
show that rates throughout the
country rose by 17 per cent last
year and in Diner London, they
climbed a staggering 33 per
cent. In combined rent, rates
and service costs prime City
accommodation is now working
out at some £45 a sq ft.’- •

Faced with those sort of
figures even members of ’the
financial community seem to be
looking at whether they need
to keep all their members in the
centre. Many are pushing out
into the fringe areas of London
and in some cases much further.

Chemical Bank* for example,
announced earlier /in the year
its intention to move some of
its London ■ operations Tri
.Cardiff, where -It Is understood
to “be paying oifly £5; a
rent. . ' . .

If the..City ' centre seems
healthy enough -.somef of the;
fringe , ’ areas have beeri-Tut
Rents -in the north east sector
have hardly moved. in .the l^'t
year and: the market is : oyer-
hang by an 1 excess of flooispace.
Tbe West End , has been- very
quiet in recent monfhs.. ‘with,
plenty of -good space-. onj;;.the
market as a result of contraction .
. by existing occupiers 'and new
and refurbished rievetopment '
coming through- Rrime^xenls Ore l,
in the £32 to £16. a ;sq ft area
for central west and £3^ttf£22.i'
sq it for Mayfair.

- ..Apart from- the. City 'one /of '
the strongest property markets'
in the- last few years has beeii ,

the Thames Valley.; CompaigesC
have decentralised,: out Toff}'
London . and 1 , * Internationa^
organisations haye :r 'b*tt ' wfeed;.'£ -'
•into 1 : the area because -of tiie-.k
. good communication': links : %^:
vided by the motorway hetitoTgr-
and of 1 course 4 Hfefllijwr.? v
■Variously . ' Trickuatned ■ v:
n Golden Triangle.* cr'“-;S2ic<nr;

' VSHey" fts expansion '*

■rapid, • •'=■"• '..y .

: .Even ! there, '

'atmosphere has. changed : 'ov«:i
.the past six .months, or ' .so. ,
iTowtis/, which’ have; vdeyeteiied ,7
a 'longstanding reflation vfor • -
beings short •' pf 'prbne -'office
actommodation' are now'facmg >
anoversnpply. 'AsJringr^mns-of }-~
£14JK>a sq ft havebren ieaefaed. .
ifo^oentres Reding i.hhfrV

'wTth demknd ^easin'g- off idd; a j
■ considerable- amount. -of -deyglop-T

jnent.jte to:; come: ..

scene the short-term : outlook for;

. rental : growth looks uhexdfl ng.^

1 A flurry of activity on prime sites in foe West Midlands

Developers take long-term view

INDUSTRIALISTS in the West
Midlands, the region hardest
bit by recession, have consis-
tently taken a mo^e pessimistic
view of - economic prospects
than that suggested by national
forecasts. The latest survey by
the regional office of the Con-
federation. of British Industry
contains yet another warning
to at - there is no sign of an
upturn. 41 We are still bouncing
along the bottom and I expect
it to be flat for some months to
come.” says Mr Chris Walliker,
the regional chairman.

- Orders remain low, cash flow
is deteriorating and redundan-
cies will continue. Nor is there
any evidence of the slock
building that - would be
necessary to back up recent
optimistic national forecasts,
says Mr Walliker.

" The “ realism ” shown by
business leaders in acknowledg-
ing that the West Midlands has
suffered a heavy loss ot
manufacturing capacity — much
of which will never return — is
reflected in the present caution
of the property market. But
given the traumas through
which many Midlands
businesses have passed over the
past two years, the property
sector has remained remarkably
resilient.

Development is predictably
restricted to prime sites but
‘there is plenty of activity as
developers look to the longer
term and seek to acquire land
and obtain planning consents.

Office rents in general
throughout the region are not
sufficient to justify new build-
ing. ■ Birmingham city centre
proves the exception. There has

THE MIDLANDS

. ARTHUR SMITH
Midlands Correspondent

been a recent flurry of activity
with two developers moving on
site with large schemes and
speculation about the start of
a handful of other projects.

Agents Edwards Bigwood and
Bewlay in their latest office
.survey say the massive over-
hang of new and modern space
evident in the 1970s has
dwindled to only 126,758 sq ft.

Mr Roger Ford, a partner in
Edwards, maintains that one

sizeable letting could cause a
space shortage. “Rents in Birm-
ingham seem set to rise sub-
stantially . if lettings are
achieved.”

The £7 a sq ft. rent level has
already been breached in the
prime area bounded roughly by
Waterloo Street and Colmore
Row. A new record is being
sought by agents Shipway
Doble, with St Philips House,
a 24,000 sq ft office develop-
ment which includes a 3.000
sq ft banking hall. The agents
are thought to be looking for
more than £8 a sq ft for the
property.

Just off the prime financial
centre is Berwick House, a
59,000 sq ft project nearing
completion at the comer of
Great Charles Street and Livery
Street. This development by
Ulster Properties is expected to
achieve a rent of up to £6.50 a
sq ft

A figure of around £7 a sq ft
is likely to be sought for Civic
House, an 80,000 sq ft develop-
ment due for completion next
spring at the comer of Great
Charles Street and Summer

Howprofitable
is property?

Making a practical
evaluation of properly
investment has never been
an exact science.

But since the beginning
of this year, we have been
producing detailed monthly
research reports aimed at
providing Fund Managers
with the information
necessary to do just this.

Our monthly surveys
analyse market trends and
■movements, and two recent
special reports examine the
use of analytical appraisal
techniques, to monitor the
performance of the property
market.

If you are a Fund
Manager andwouldliketo
be pn our mailing list, or
you would like to receive
a copy of the special
reports, please contact
Rowe & Pitman,

Property Services limited
104/6 Leadenhall Street,
London EC3A 4AA.

Investment Surveyors

• 3 * 0 - 1 . • ilL’: ’• \

Mood of caution
in E. Midlands

AGENTS IN the East Mid-
lands report a flat market for
both commercial and
Industrial property, with no
Improvement thought likely
until the antumn at tbe
earliest. The stole of factory
and warehouse building has
been cut sharply, with work
confined principally to small
units. On offices there is little
prospect of developments of
any size as tbe region
struggles to restore the
balance following the band-
ing boom of tbe early 1970s.

Leicester still carries the
legacy of that speculative
burst, with around 500,000 sq
ft of office space currently
vacant. Modern accommoda-
tion can be rented under
special deals for as little as
50p a square foot as agents
struggle to unload space.
Such deals can usually be
struck on blocks on the city
ring road which tend to be
advertised at around the £1 a
square foot mark.

In the city centre the going
rate b nearer £U0 to £LS0.
rising to £2.50 or even £3 for
the prime sites in the New
Walk professional area,

Derby, which has failed to
establish Itself as an
important office centre, faces
similar problems. Small
lettings have realised £2 a
square foot but major new
blocks which have been on the
market for years stand empty.

St Peters House* Gower
Street has 70,000 sq ft on
offer in units starting at 600
sq ft Only a fraction of the
space has been let In the
Heritage Gate development of
four blocks totalling 180,^0
sq ft Around 13,000 sq ft in
the 32,000 sq ft Saxon House
block has gone, partly as the
result of a special deal to
attract small tenants.

The fifth floor of Saxon
House has been serviced to
offer tenants taking units of
between 280 and 400 sq ft the
use of typing and reception

services. An inclusive weekly
rent covering rates and
service charges means that
the only additional cost for
tenants is outgoing telephone
calls.

The scheme has tended to
attract companies starting In
business for the first time. A
similar demand Is reported in
Nottingham from managers
who have taken redundancy
money to set up on their own.

Nottingham, as the regional
capital, enjoys more respect-
able rents of around £4 a
square foot. That, neverthe-
less, is not sufficient to
justify . significant hew
development. Property cur-
rently on the market tends
to be in smaller blocks.

As a designated new town
Northampton has enjoyed a
growth in rents. Levels of
around £5.50 are projected on
a handful of small develop-
ments currently under way.
Similarly, on the industrial
side, Northampton* with tbe
backing of a development
corporation, has pressed
ahead with new building.

Elsewhere in the region
there is caution as the amount
of vacant industrial and ware-
house space climbs. Tbe
regional council of the Con-
federation of British Industry
reports no sign of an Improve-
ment in home . or overseas
orders, a low rate investment,
and little optimism about
growth prospects.

Throughout tbe region local,
authorities have been active
In' helping developers to
assemble and service sltes and
many are available, often with
good motorway connections. . .

Most bn tiding activity has
tended to be in nurseiy. units
.where there has been Some
improvement in rents. In
general, however, against a
gloomy industrial background
rents have tended to weaken
over the past 12 months.
Agents have increasingly been
forced to offer special deals to
keep the market moving.

Row. This £7.5m : investment by
Norwich Union takes Its
property portfolio in Birming-
ham to more- than £60m.

The first of the two new. pro-
jects started this year was by
Tarmac, which aims to Com-
plete a 120.000 Sq ft building
by autumn 1984. Tbe develop-
ment, on the site of the former
Post Office' sorting depot, will
be an important feature of Vic-
toria Square, a noted city land-
mark. By the time the scheme
is finished in more than two
years rents are likely to be
approaching £S a sq ft.'

Tarmac took the plunge to
be first among a series of
possible projects because of con-
fidence in the quality of .posi-
tion. Equally intriguing is the
move by Embassy Develop-
ments, a privately owned- Birm-
ingham-based company, which
this month has quietly started
work on a site at the junction
of Church and Cornwall Streets.
Mr Roger Holbeche. managing
director, has deliberately opted
for a quick-build steel-framed
building with the object of hav-
ing the 60,000 sq ft office block
ready for occupation by-August
next year. He hopes that Civic
House and Berwick House
will by that time have been
let, leaving Embassy with a
clear run until the Tarmac pro-
ject is completed up to 12
months later.

• The other project most likely
to be coming out of. the ground
by the end of this year has
been put out to tender by Birm-
ingham City Council on a prime
sue near to the Bank of Eng-

CONTINUED ON
NEXT PAGE

know how at vottr

duvets. Oneof ttremostresperied; .

: . ; ‘names in buildingsince 1884 .. ^
• - '• -• Over theyear5 we haye bruit up tot" ■

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'gn^Tisareputatk^inthehiditsttysecond.J
'-tonone. . ' ■ ■• fr l

Now weare tiffrmiglheSe mhereotskllls ;

and lea^^‘11 youareinterestedratallcrng .
-/ 'about thett^ Chb/ msDev dt ^^re nt^ -

phone 'DerekWsddein.-wfto Wiltbe

f ' V- VVfe look fbrwahlto yburcafl; .

EstcourfStreetDepizea,

_ Wilts SNIDE-L "

V TyephroeQ330212L‘ v :
Tfek^SSSOT r r ^- -

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. a gyr r

.y*tm m H T «,'■ --

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. -t- . '’.••-s • - -

& Staff

9 MILNER STREET LONDONS^-

__ . m.'01-5BI 54Q^7T6tEX^5J3V : -

MarChoiCMn:, Ovopna Ui*« riotaaRmon^n^OM^

■ ALL OWE BEDROOM FIATS SOtP/ • ‘5.

A FEW 2-BEDROOM FLATS AVAlLABLETOGETtiE^
WITH 3-BEDROOM FLATS ANDMA1SONETTES , r
OF VARYING SIZE AND DESlGN.THE MAJORITY: ;.
HAVE A DIRECT SOUTHERLY VIEW OVERTH&* : ■
ATTRACTIVE SQU AHEGARDENS. : v

The flats are built to anti^ceptionally high standard-
and some have their own street entrance. -
There is a porter and access issiveri to the - .

' Square, Gardens. /. ., ; .' l -\ j. :

Low Seivice .Charge , , ' - -•
COVERED GARAGE SPACES
with adjoining lode up store rooms avallabift :■ - ' .

For an illustrated brochure and appointment to view the
show flat apply. the sole agents:-
■ Jackson-Stops & Staff - . : -

9 Milner Street; London SW3 Tel. 01-581 5402

Indnstrial

Margate, Sent

15,060 sq ft

Factory & Office Building
on 1 J5 acres. Freehold for Sale

Ashford, Kent

35,000 sq ft

Modem Factory/Warehouse-'
on 4 aoes. Freehold far Sale

Boaraemootli,

Dorset

31.750 sq ft

Modem Single Storey Factory
Freehold for Sale

West Norwood
SE27

10,800 sq ft

Recently constructed -
Headquarters Factory/CHk»
Building. Lraig Lease for Sale ’

0irene^ter,filo&

12,770 sq ft

Modem Stogie Storey
Factory. Freehold for Sale

Offices

KUbarn SW6

1,715 sq ft

Self-contained Office
Building. Freehold tor Sato -

Curzoit Street,

1,800 sq ft

ftestige Suite

Lift, C.H:, Car space "

. . '• v

MaryleboneLane

1,250 sq ft

Fully-fated Office Suite.

VietonaSWl

7*35 ft

Refurfrfsfaed Suite of dteradfis’

Aylesbnry:

Bocks.

HigHStreef

Frontage: 35 ft
Grpuhcf Floor; 703sq-ft

Sonthampton

Above Bar .

Frontage; 17 ft'6 in.
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Frodbqe;.97 bp

XiBfooxpe^Bc«E4 W

56/62 Wilton. Road. London SW1V 1 DH

Tel: 01-334 8454

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VII

Financial Times Monday June 28 1982

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UK PROPERTY VH

Resilience put to the test

IT IS a sign of tie. times that
even m the South East the com-
mercial property market' Is
suffering from a dose of over-
supply is an but a few isolated
locations. Demand for accom-
modation has weakened con-
siderably over the last year,
while rent levels, are hardly
muring and certainly not keep-
ing abreast of inflation. Agents
are working overtune to secure -
deals and the old tried . and
trusted financial incentives of
rent-free holidays, ■ etc, are
being trotted -out a gam.

Even s© the South East is one

of th e mo st resilient regions hz
the., cqg ntty and one . where
.institutional investors are still

THE SOUTH EAST

TERRY GARRETT

willing to back good develop-
. meets even though they are
getting a little more critical and
'analytical in deciding what they
are prepared to fond.

Outside of the City of London
the area that has attracted most
interest in -recent years Is' the
Thames Valley stretching back
along the M4 motorway right to
Bristol. Phrases hke “Siijcon
Valley *’ and the “Golden.
Triangle” have. been coined to
describe the region where, *mfii
recently, .the main problem, was
in finding the right property
rather than finding the tenant.

The market has understand-
ably cooled both because of the
recession and the build-up of
development in certain centres.
Nevertheless the region still has
a dot going for it There is no
need to go over the main argu-
ments in favour of the area
again- but briefly, the combina-
tion of Heathrow, the motorway
network and the railway Mwirg
have pot it in the forefront for
ease of communication. It is

also an area without vaA tracts
of older and declining industry*

-Demand has been kept '..alive
by both relocation by comp&mes
from the centre 'of London and
a steady influx of overseas cor-
porations. Success has proved
self-feeding over the last few
years and high technology,
industries have sprung- up along
the corridor. There are further
more encouraging shifts, of
emphasis in demand by tenants!.
Whereas much of the earlier'
demand from overseas operator®-'
was for. warehouse space plus
some; office accommodation— re-
flecting the region’s obvious
at tract ions as & distribution
centre— there has been a grow -. 1
ing demand for nmnu f ^ r myTpp
facilities- -

Vet headlong expansion can-
not be expected to be sustained
in a recession. The giJM-fcjffnfng
o£ the pace has inevitably left
the “Golden Triangle” glitter-
ing a little less brightly and
some agents are talking of the
region in terms of a myth rather
than a reality. That seems a
harsh verdict. The longer term
future of the Thames Valley-
does not seem in doubt even jf
there is currently a phase of
oversupply and sluggish rent
levels.

As the spotlight fades on the
west, at least for a while, the
area to the south of London
around Garrick is attracting
more attention. Office rents in -
towns like Crawley. Reigate and
Horiey are now in the region
of £7.50 to £8.00 a sq f t against
£Sj 5Q a year ago-— a significant
advance but still a lot cheaper
than the £12.00 to £14.00 a sq ft
tenants are expected to pay for
floorspace in Reading to the
west.

Moreover, there is a definite
shortage of good accommoda-
tion. though a couple of develop-
ments — a large one in Hprley
for example — should ease the
congestion. British Caledonian
has recently expanded in Craw-
ley and agents Healey and
Baker are currently on the look-
out for 20,000 sq ft of new office

space for another airline— from

'Europe;.'

The fuel developing the “fire”
to tbe.-south is much the sene
as that-.wbich sparked such a
successful ran'm fee west—
communications. How London's
requirements fqr improved aJr
links are finally -resolved is still
a matter for conjecture. ' But.
putting that aside road links axe
the key to the growing con-
fidence in the south by both
tenants and investing, institu-
tions. When the M25 is com-
pleted m a few. years time
London; will be. completely
orfjjted by a motorway dramati-
caBsC cutting travelling times
northwards from the south and
'east .' 1 '

The influence of. the M25 on
commercial properly develop-
ment, hk the region should not
be understated. In a review of.
the ^motorways impact by
Nathaniel Lichfield and Partners
and Goldstein Leigh Associates
last year' the M25 was described
as “the most important develop-
ment to affect London and the’
South East since tie construc-
tion of the Underground lines.”

.The primary objective of the"
orbital motorway in tic authori-
ties' eyes was to teduce the
traffic congestion in central
London, in particular to divert
heavy lorries away from tie
capital. But in diverting traffic
away, tie road opens up vast
opportunities for areas which,
in terms pf industrial or office
development, were previously
hampered by poor communi ca-
tions.

.For example, before the
developments of the M25 it
would take a truck four hours
to struggle from Tilbury Docks
to Heathrow. That was usmining
good weather conditions and a
fairly uninterrupted run along
the North Circular. "When the
M25 is operative that travelling
time could be cut to under one
and a half hours.

So industry and offices win
have a wide choice of “where
to expand in a few years’ time.
But oue of tie main impacts

could be on the distribution
sector. Depending on the type
of goods being handled and
ultimate markets being served
the distributor in the South East
is likely to be faced with
divergent demands. His markets
may mean that he needs to be
within easy Teach of tie GLC
area, tie aiiports, the major
motorways going north and
west, tie Port of London
(Tilbury), the Channel Ports
and possibly the FreighMner
terminals

Those different requirements
wefe irreconcilable. But when
tie M25 is completed a dis-
- tribstor can locate almost any-
where along its route or at
nearby feeder roads and have
good access to all those areas
mentioned above. The eventual
impact on demand and' rent
levels for warehousing space in
hitherto slack areas is. obvious.
Equally, regions now command-
ing premium rents, because of
their location, such as ware-
houses around Heathrow, may
find tie going a little tourer
towards the end of the eighties.
: New commercial development
is likely to be centred -on three
types of location: around junc-
tions, where the M25 will
intersect with existing main
routes: at fragmented sites
caused by the construction of
tie motorway and realignment
of existing roads which* will
make areas of land unsuitable
for anything else but redevelop-
ment: and finally in and around
urban towns fairiy close to the
new road where unused and
vacant sites could take on a
whole new value.

But for tie present the reces-
sion is' tie overriding factor.
There is still a considerable
over-supply of industrial
property, especially of the 5,000
sq ft to 10.000 sq ft type. Agents
Bernard Thorpe are not expect-
ing any rental growth in 1982
and some older second-hand
property may well be unlettable.
In such cases capital values are
back to “ site value ” for a re-
development consideration.

Smaller premises faring the best

THE PAST year has seen, in-
creasing amounts of vacant in-
dustrial and office space appear,
ra most cities and larger towns
in the South West, with rents
remaining stable or fating in
some cases, bat there is .cantina-
ing demand for small modern
factory- units in most areas.

In Bristol, where tie reces-
sion has only 'recently bad sig-
nificant impact, agents Hartnell
Taylor-Gook report" tiat &dns^
trial inquiries have fallen off
recently, particularly for larger
premises, but a significant num-
ber of local concerns have
moved into smaller, more suit-
able space.

Units of around 5,000 sq ft in
the area are now letting at
around £Z25 a sq ft, while
those of 3,000 sq ft or less, of
good quality axe' available at
around £3.25. “ People seem
happy to pay more for smaller
premises it they can save some-
thing by moving out of a factory
which Is too large for them,”
one agent said.

However, there is still a con-
siderable amount of larger, out-
dated factory space around.
Bristol, and with major new
developments such as tie Aztec
West site becoming available,
the over-supply could last for
somje time:

It is estimated by Hartnell
Taylor Cook that there la now
around 600,000 sq ft of vacant
office space- in tie Bristol area,
though much of it is not prime
property. A further 600,000 sg
ft of space is now under con-
struction, reflecting tie rise in
rents about a year ago to around
£6 a sq ft, a figure which re-
mains- the average rate at
present. '

• Inquiries for top quality
space In Bristol appear to be
picking up slightly, with a fair
amount. of inter e s t from com-
panies ..outside the city, but tt
is frit that rent levels will re-
main stable fqr some time to
come, despite some lettings at
£&50 a sq ft and a few asking
prices of £7. .

..•In Swindon, one of tie most
active centres in the South
West, there is around lm sq ft
of-j industrial space available,
the highest for some time, al-
though much of this is in large'
units or older premises, accord-
ing' to agents Farzant ami
Wightman.

The largest of tie units avail-
aHe is tie 160,000 sq ft Howard
Tenens depot which was- vac-
ated*- recently, while tie 106,000
sq' ft former Triumph Inter*
national factory is on the mar-

ket, and a 90,000 sq ft unit
which Ralton Packaging was
due to use is also available.
Rents are around £2 a sq ft.

: One of the largest develop-
ments in Swindon is now go-
ing ahead, tie St Martin’s Pro-
perty project on 80 acres adja-
cent to the M4. which Hartnell
Taylor Cook is due to. start mar-
keting later this year..

. This .-low-density landscaped
site Is aimed at attracting high
technology companies, as are
a number of council-owned de-
velopments such as the 28-acre
Croft campus site, which has
planning permission for 300,000

THE SOOTH WEST

LOftNE BARLING

sq ft of space. This has recently
been boosted by a go-ahead for
an important link road, to be
jointly ftmded by tie town and
county councils.

There is also a considerable
amount of office development
space available in central areas
of Swindon, notably 200.000 sq
ft on the North Star site, which
was earmarked for Philips
Business Systems, but is now
available again.

. Developers are also being In-
vited to submit plans for tie
180,000 sq ft site in Newcastle
Street, tie former Garrard fac-
tory location* where planning
permission is expected to go
through on appeal.

Overall, around 150,000 sq ft.
of modem office space is now
available an Swindon, with
around 80,000 sq ft in tie pipe-
line. In the longer term tie
Fleet Street improvement
scheme will provide an addi-
tional 150,000 sq ft, while the
Fleming Way site, being
developed by. Taylor Woodrow
and Hamhro Life, will create an
additional 280,000 sq ft.

Swindon is currently attempt-
ing to attract more company
administrative departments
from their London headquar-
ters, with tie incentive that
real rents in -Swindon, includ-
ing rates, amount to about £10
a sq ft, compared with around
£30 a sq ft in the City.

In a number of areas of the
South West, including Swindon,
there is an increasing number
of Incentives for companies to
move into industrial premises,
notably phased -' rents ' which

start at a fairly low level and
Increase towards tie end of tie
contractual period.

Other perks indude a num-
ber of free services, such as
the installation of heating and
lighting; the carpeting of offices
and other benefits winch allow
companies to . move ~ in with
mini mum additional costs.

In the Southampton area a
number of new s cheme s are
going ahead, notably tie 146,000
sq ft City Industrial Park, a
joint project between Heron
and tie Coal Industry Nomi-
nees. while Southampton Busi-
ness Park, funded by Abbey
Life, win provide neariy 160,000
sq ft

The Port Authority is releas-
ing 17 acres of land in the East-
ern Docks area fox develop-
ment, while a further .30 acres
in tie Western Docks is under
discussion. «

King & Co are handling two
developments in. tie area, tie
Nursling Estate (for Taylor
Woodrow Industrial Estates)
where 30,000 sq ft of space will
be available by tie end of tie
year, and tie Waterloo Indus-
trial Estate (Espley-Tyas) which
offers 11,000 sq ft Both of these
have asking rentals of £2-75 a
sq ft.

Overall demand in Southamp-
ton has fallen off considerably
since tie near-boom two . to
three years ago but the re is
still confidence in tie medium-

term prospects, still partly
fuelled by the offshore develop-
ment prospects.

There is around 180,000 sq ft
of' available office space in
Southampton town centre at
rentals of around £5 & sq ft but
planning consents on further
development are being restric-
ted for tie time being. Alleyn
TTnmip., iwing handled - by King
& Co, is a 1960s office block
which is being rebuilt to pro-
vide around 20,000 sq ft of
space, while 140,000 sq ft at
Nelson Gate is now being let

In Exeter, industrial develop-
ment is on two main estates,
which have around 25 acres left
but a further 50 acres is likely
to be available soon. Demand
has been slow recently and
5.000 sq ft units are available
at around £2 a sq ft. although
there is not a great deal of
vacant industrial space. Office
rents in the area are generally
below £4 a sq ft.

Plymouth has around 500,000
sq ft of industrial space avail-
able. although much of this is
around 20 -years old and asking
prices are low— around £125 a
sq ft New premises are at
around £180, while smaller
units are fet chin g £2.

There is about 100,000 sq ft
of office space available in the
city at prices around £3.75 a sq
ft, although as In the industrial
market premium prices are
being paid for small modern
accommodation.

West Midlands

CONTINUED FROM PREVIOUS PAGE

tUUSOWOlWESTIHDUHDS

3MI£SM5JtlNCTIOM3

123,000$

jAaSueraoHpwwnloirf

• RflfrftW •UHfinBfBdBta .

laud b uilding s and bounded by
Needless Alley, Cannon Passage
and Cannon Street,

The planning brief is for
around 60,000 sq ft of offices
and some retail development.
Agents believe the -site wiH
command a premium and that
any developer will be anxious
to press ahead with tie project
rather than incur tie interest
charges involved ia any delay.

A clutch of other important
office schemes. - are . . well
advanced and could start within
tie next 12 months, although
agents point out that the diffi-
culty of funding projects
could act as a regu aili ng mec h-
anism and prevent oversupply.

There have been protracted
discu ssions over development
of the old Snow Hill Station, a
six and a quarter acre site with
provision for around 340,000
sq ft of offices,.' A similarly
massive scheme is planned for
Paradise Circus, where Heron
Corporation won tie Birming-
ham City Couhril tender for
around 200,000 sq ft of offices
in addition to a 200-bedroom
hotel. 6hops, leisure... and con-
ference facilities.

: Rank City Wall has a scheme
for a 120,000 sq ft develop-
ment near to New Street
Station; and Espley-Tyas has
plane for around 86,00 sq ft'
of diaracter offices in NewiiaU
Street.

In Edgtfflsttffi, where there is
198,787 sq ft of new and modem
space on the, market according
to ties.. 'Edwards Bigwood
survey, rents have held steady
but do not justify major new
building .schemes. There are
several projects of around 5,000
to 20000 .sq ft but Um principal
demand is for self-contained

units of op to 2,000 sq ft which
are likely to command rents of
£6 or more a square foot *

Solihull and Sutton Coldfield
are seen as tie - emerging
suburban office areas but cur-
rently overhanging the roirket
are large vacant 3L office
blocks. Broad Oaks House.
Solihull, with 80,000 sq ft and
International House, Bickenhill,
with 60,000 sq ft. are two
modem office blocks with
obvious attractions for. com-
panies considering a move to
the West Midlands.

Industrial ■ rents, despite tie
number of special incentives
now on offer to attract tenants,
have held up over .tie past 12
mouths. Predictably, new budd-
ing has declined sharply. Such
speculative developments as
exist are very limited and con-
fined to prime sites or small
units. .

Rents for new accommodation
on prime sites will run between
£2 to £235 a square foot, rising
to £2.50 for nursery units.
Secondaiy sites -can be expected
to... achieve £1.60 or more' a
square foot

The most significant trend
over the past 12 months has
.been the number of industrial
companies which,. In tie face
of tie decline in manufactur-
ing, have decided to realise
assets*-- not thrm^h straight
sale but by moving into, the 1
development market -

IMI, the Sinoingbazn-hased
metals mid engineering com-
pany, is only tie latest to
announce plans- ' to - develop
around half its present 220-acre
site close- to tie Spaghetti
Junction of the motorway net-
work. Other weD-known com-
panies with similar plans are
GKN, Birmid Qualcast, and
RnberyOwen.

26 City Road,E.C.l.
20,095 sq.fi.

Centrally located prestige office development overlooking theHJLG* sports ground.

Completion Autumn 1982.

Pall MaU, S.W.l. 8,000 sq.fi.

Our clients are currently restoring and rebuilding this property which will be ready for
occupation in Spring 1983. Tenants ? individual requirements can be accommodated at

tins stage? Pr in cip als only (refCJ^A.)

6 St. Albans St., S.W.l.
2,100-12,700 sq.ft.

This is a new air-conditioned office building situated to the north of Charles n Street
in peaceful surroundings. Rents commencingfroin£16.19 per sq.ft,
with a rent-free period nmil January 1983.

A Selection of Office Suites

49 Whitehall, S.W.l. 800 sq.ft upwards
38 Jermyn Street, S.W.l. 1,176 sq.ft.

10 Charies 11 Street, S.W.l. 885sq.fi.

We are involved in a number of major office developments, which will provide
accommodation of between 130,000 sq.iL to 200,000 sq.fi. Pr i n c ipals only. All enquiries
will be treated in the strictest of confidence, (ref C.J.A.) <

LOOK

FURTHER

74 Grosvenor Street
London W1X 9DD

Tel: 01-491 2768

A Saving of €1,050,000

£per square foot

36-

10 -

1970 1971 .1972 1973 1974’ 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984
This

negotiate iromtfcain^ - * - And where willients go tomorrow

For furtfrer information on our Rent Review advisory service
Peter Oswald ERICS (City), Robert Dean FRICS (West End)

PROFESSIONAL ADVICEMEANS SAVINGS

20 Grosvenor Hi!L Berkeley Square, I^ndonWlXOHQ.
Tel: .01-499 8644 Telex: 263796

19 St Swithins Lane, London EC4N 8AD
Tel: 01-626 0431 Telex: 8953710 .

SAVILLS

UK PROPERTY VIE

Financial- Jtmes- atoaaay

Shopping developments to the fore

*1 T*r + + * * _> , t # <• , \ . * • ' - * ♦

<* • -v- . - -

SCOTTISH property men are
clearly tired of the word ‘ reces-
sion." They acknowledge it.
But they repudiate implications
that the Scottish property scene
is gloomy or that there is htfle
optimism for tile foreseeable

^“Despite the recession our
clients are still pumping a lot
of cash into Scotland, even al-
though it has suffered worse
th 3 n some other areas, says
Ted Webster of Richard Ems
in Glasgow. “ Both as investors
and developers," he adds. “pen-
sion funds are proving false the
criticism that they are not pre-
pared to be market leaders.

There is evidence that the in-
vestment is becoming a little
more discriminating. A lot of

SCOTLAND

WILLIAM COCHRANE

developers arc still moving into
the country and some of them
are finding it harder to secure
funding for their schemes than
was the case a couple of years

ago. , .

Allan Campbell Fraser, chair-
man of Scotland’s major inde-
pendent development company
Developments Commercial and
Industrial l Holdings), is all for
discrimination, remarking that
the Glasgow-based DCI is hav-
ing no trouble at all in f und i n g
its awn schemes.

■■ There have been various
developments which have been
difficult to fund," he says.
“That is because they are
wrongly located — speculative
development in anticipation of
demand which might not come."
he adds, derisively. “ Get them
pre-let on a good covenant and
there will he no problem with
institutional funding.”

The market place for lettings
and property rents is healthy
enough in Scotland — where it
deserves to be. Ted Webster
prefers to concentrate on the
three main centres — Aberdeen,
Glasgow and Edinburgh— on the’
grounds that provincial Scottish
towns do not offer the same
spread to potential investors.

With its infusion of North Sea
oil money Aberdeen still takes
pride of place for prime offices.
Rents there are between £6 and
£7 per sq ft, says Mr Webster,
although £8 has been achieved
for 12 Golden Square, which he
describes . as the city’s “ best
refurbishment," and is let to the
Royal Bank of Scotland. Yields

for a good standing investment
are just about 5 per cent

The warehouse market has
flattened off in and around.
Aberdeen, he says,- but new
lettings are still taking place
and Ellis are seeing some in-
creases in rental values— £2.25
a square foot for straight ware-
housing or £4.50 for offices
associated with these schemes
seem to be the. current bench-
marks.

Glasgow prime offices are still '
under upward pressure at
around £6.25 per square foot
now, according to Ellis, with a
rise to £6.50 likely by the end
of this year. The warehousing
market, they say, is still in a
very difficult phase with rents
steady at about £255 a square
foot. Office yields are probably
below 5 per cent while ware-
house yields have risen to be-
tween 7i and 74 per cent

The F.nis view of Edinburgh
offices is still conditioned by
Scottish devolution, which did
not happen, and the oversupply
of space which did. Rents, they
say, are steady at about £5 per
square foot in a period of slack
demand and warehousing is very
flat, with rents at about £2 a
square foot or even lower.

Ted Webster concludes that
the market for the investment
buyer in Scotland is very good.

“ Recession ‘has pushed some
properties -on to the market,
thr ough sale or leaseback for
example,’.’ he says. “The position
for a retaining investment
buyer with a lot of money offers
plenty of choice.”

Elaborates

• Meanwhile DCTs Mr. Fraser
elaborates upon, and in one
Instance qualifies, his basic
theme of pre-let development.
The company, widely expected
virtually to double its profits
to between £900,000 and £lm
before tax for the year ending
last February, has diversified
from an industrial property base
since its formation in 1974 into
retailing and office develop-
ments, -and geographically from
Glasgow to Aberdeen and
elsewhere.

Current developments include

104,000 sq ft of office and retail-
ing space in Argyll Street,
Glasgow's prime shopping pitcb.
Here DCI has pre-let a banking
hall to the- Royal Bank of
Scotland and has three tenants
taking office space.

It will be two years, however,
before the shops are built, says
Mr Fraser, and the company is
not thinking of - marketing them
in the short term. In Argyll
Street shop rents rose too far

two or three yean; ago: "Any-
one coming in now,” says Mr
Fraser, “ could dictate .his own
terms.”

More straightforwardly, DCI
demonstrated its pre-letting
policy at the end of Hay with
news of the leasing of 61,000
sq ft of its 90,000 sq ft new
'industrial/warehouse estate at
Monklands. seven miles outside
Glasgow at Coatbridge, to the
Glasgow-based distributor
A. Goldberg. *

Only 18.000 sq ft of the site
remained unlet after that, with
two further units already under
offer. “ Coatbridge will be
totally let before the builders
are off the site," says Mr Fraser.
“We have never yet left a site
with a square foot of empty
space,” he adds. “We don’t havB
any soft money, so we have to
reflect tenants’ wishes, possibly
two or three years ahead.”

As an observer, Mr Fraser
notes a lot of institutional
interest in retail investments

In provincial Scottish towns like
Dumfries, Elgin and Perth.
Unlike Ellis (which is deeply
involved) he is not happy about -
the Scottish Development
Agency's scheme for the St
Enoch area of Glasgow.

Deserts

He takes the view that
planning authorities have
created deserts in inner city
areas— specifically by - taking
the population at the East End
of Glasgow out to Hast Kilbride
- — and that attempts to follow
the fashion for regeneration of
inner city areas take the risk of
replacing one desert with
another.

Overall, retailing seems to be
the area In Scotland for com-
petitive development, arguments
and issues. In Glasgow, at the
end of March, a consortium of
developers announced its - inten-
tion to submit a -planning appli-
cation for a three-acre site on
the corner of. Buchanan Street

and SauchiehaU Street The view
from an unbirad observer was
that the planners would find it
hard to Jet tins' and the St,
Enoch scheme go ahead at the
same time,

.In Edinburgh, where Princes
Street has. sustained ,* barrage
of local -criticism, the 'Reed Fen-
-sioii Fund is funding an adja-.
cent 70,000 sq ft specialist
retailing centre at Wayerley -
Market In Aberdeen three size-
able developments are on the
way, although questions have
been -raised about the Dutch
group Bredero’s 340,000 sq ft
scheme in-St. Nicholas Street at
the east end of Union Street.
Aberdeen’s prime shopping
thoroughfare.

New shopping development
dearly seems to be In the fore-
front of property men's minds in
Scotland. They are saying that
people will still have money to
spend, which tends to put the
current recession Into perspec-
tive.

■? •

rift

Model of the Scottish Development Agency ’s-St. Enoch develapinentH^losgom' _ ^

— one of several major schemes ' ’ ■** • -- -• • ‘ 1

Main business centres present

THE NORTH’S property scene
presents a classic picture of the
impact .of .recession and
structural industrial change.

Developers are looking ahead
with new schemes to make the
most of. any upturn: rent and
price-juggling is going on to
attract property-seekers still
scarce on the ground;, big mills
and factories stand empty,
many perhaps never to see
another occupier.

In Leeds there are very few
gaps in the availability of
industrial space for renting and
purchasing. There have been
some complaints though that
there is a shortage of modern
purpose-built factories of
medium size in suitable loca-
tions.

Developers and the institu-
tions have been taking advan-
tage of relatively low building
costs for the construction of
factory units and offices and
some of them have brought
forward building timetables.

Three key industries in Leeds
— printing, medium and light
engineering and textiles — have
taken a severe buffeting in the
recession. This has compounded
the national economic down-
turn’s impact by severely
depressing demand from
industry for new premises m
tile West Yorkshire city.

At the top end of the scale
many big manufacturers have
had their own new factory

complexes specially . designed
and built These include the
Systime computer company and
Sulzeir. .

Such employers — relatively
big in a countywide economy
notable for a profile of
businesses whose workforces are
smail compared to most other
industrial . areas — are likely to
continue i this trend and so
avoid the speculative market.

At the other end of the scale
demand for nursery units is
very modest indeed.

Warehousing and dlstxrbutio.i
— the areas of activity where
there is a real spark of life-
command higher rents than for
industrial properties. For the
latter these vary from about
£2.75 a sq ft for nursery units
down to £1.90 for premises of

20,000 sq ft. Sites of new
factories and warehousing
include tile Ifatchmore Indus-
trial Park and the Gelder
Trading Estate.

There' is a considerable
amount of new office develop-
ments. A very large ’percentage
of these, however, are in the
5,000-6,000 sq ft floor space
range, creating an imbalance in
the market Moreover, only a
few lettings were made in this
range last year.

Less than 40.000 sq ft of first-
let accommodation have been
taken up since January, which
could mean that owners and
agents will be struggling to get

NORTH OF ENGLAND

NICK GARNETT
Northern Correspondent

rid of 100,000 sq ft during the
whole year. A typical good year
would see 200,000 to 225,000
sq ft let.

In, Sheffield the growing
expectancy over the past five
years that the city, S o dependent
on steel and engineering, would
succumb at least a little to the
drift towards warehousing and
distribution seems to have been
well-founded. The trend has
been accelerated by the collapse
in the steel market and the
severe decline in engineering
output

There has been a spate of
industrial lettings and
purchases though. On the
Parkway Industrial Estate lets
this year have included, 7,800
sq ft to NEI Mining Equipment
and 10,500 to the West German
company Nfedorf. Computers.
Developers there have been
encouraged enough to build
another 20,000 sq ft of units.

There has been a modest
stream of office lets but nothing
of the spectacular nature of the
“scoops” achieved by Sheffield
a few years ago — Midland Bank
central services and the Man-

power Services Commission
headquarters.'

In and around Newcastle is a
fairly depressing picture of a
flat market The Hartlepool and
the Newcastl e-Gateshead Enter-
prise Zones have generated a
smaH wave of activity, mainly
on the warehousing and distil-
tion side. Quite a lot of this is
simply relocation from immedi-
ately outside the zones by
companies seeking to take
advantage of the 10-year Tate-
free period. That is important
to many companies who could
be paying 2.48p in the pound
rates outside the zones.

Of the zone areas there is
probably more and varied space
available in the Team Valley
Trading Estate, part of which
is in an enterprise zone. Much-
of this is speculative- , ware-
housing.

There is a market in the sale
of second-hand freehold
factories. Prices of these reflect
the special grants available for
the building of new factories in
what is a Special Development
Area.

Normal building costs maybe
£20 per sq ft but tins can come
down to £8 to £12 with grants.
Secondhand, factories generally
have got to be on sale at no
more than £4 to £4J>0 per sq ft.

There is something like

400,000 sq ft of new and refur-
bished office accommodation in
Newcastle and Gosforth, . the

two main local areas for such
space.- I'

Merseyside ■ _ is marked" by-
somewhat of -an imbalance in.
available office- accommodation
but a plethora -of . -industrial
sites and' premises. ,

There is a healthy stock of
refurbished office . accommoda-
tion — some of - it in the-
specta cular - looking' buildings
which give parts of Liverpool’s
heart so much of its character. .
There is a shortage. though of.
new office accommodation, With
the - principal exception of
Imperial Buildings:

General office' rents range
from £425 to £4150 a. square,
foot, - considerably below Man-
chester, where the £5 barrier
has long been comfortably
breached.

There is a very considerable
amount of large factory pre-
mises emptied by the pressures
of recession and structural
change and many of these. huge
Industrial landmarks may never ;
hear the sound of machinery '
again. '

Developers- have , been sharp
enough though to plough money ;
into speculative units to give' a.
wide choice of newly-built
accommodation if or when,
demand really takes hold.

The flow of inquiries for rent-
ing and purchasing of. proper-
ties in Greater Manchester is
now stronger than for perhaps

: two years. \ ‘ : r ’ -

There ls : a greatT^ral-df pro.
.perty ■■ton.i-fhe . market’ and- a
proportion -of it--- Is ^moving,
though not' 'at prime prices.
Some areas— -a belt of land ir
aad'- aniund 1 Stockjto; 'bring a
notabIe':exampIe-^-stiIt “enjoys
stronger- demand for ^paie. than
elsewhere in -the;;conurBatUm
and Wflmslow -still, retains iN
-position as 1 a primed officeTbca-
tion. .-. : • .;. y . .

Industrial'- : and : .warehousing
rented tendto Vary from £2.40 a
square iforit to l£1.75;‘'or lower.
Demand 'tends 'to. rhe. Stronger

around motorways, ~ partly 'be-
cause.' of transportiogWtica "but
-also as a-rasitff-df'jtbe prepon-
derance- -of older and more
difficult -to sell propertiesto the
east- of the ; city, ; where -the
motorway: links are-net as well
developed. ;- .

Some ' Older . ~ . .mtitstyle
premises Jiave gone under the
hammer &r^g^eaway'prices of
90p or less a- square -foot. . ^

Sites, have been -moving 'in
'tbd r !Eraff6zd-Sa£ford -Enterprise
Zones, thougfa thare are plenty
who ' say; itnese-- are . ^generating
very. littie,new-eng>loyment but
/are^ ^i^ilr to Sa considerable
Iteopprtiph ofnejV. 1 tenants from
immediately, over-, the' boundary .
A- site .offttnee-fifths of an acre
was sold for £40,000 and one of
1| aerfes, for £95.000. \ A acre
site with- small offices wemt-for

£105,000. ■ :• -> v t ; • _ .

alls

Ase

/ \r*

**-.'■ : *'■ . ’ » -'»V

Jkjhe Garonor Distribution Centre

Winners h Triangle

' 'V

-v v * «-

Cardiff Industrial Park, Cardiff
Development project on 33 acres providing
design and build packages to precise
requirements. Occupation approximately
6 months from decision.

Lawnhurst Trading Estate,
Manchester

22.000 sq. ft. available in units of ’

- 5-6,000 sq. ft. to be let with Immediate
possesion.

The Garonor Distribution Centre,
Leeds

Units from 1 5,000 sq. ft. or In multiples up to

110.000 sq. ft. to let with immediate
occupation.

Stadium Way, Bland Road, Leeds
6 units of 4,000 sq. ft and 8,000 sq. ft. to let
with Immediate occupation.

The Southern Trade Centre,
Camberley

New units from 5,000 sq. ft. to total of

225.000 sq. ft. in variety of sizes to be let with
occupation from mid 1982.

Winnersh Triangle, Reading

Phased development with total availability of

600.000 sq.ft. In mixed unit sizes on design -■
and build basis. Speculative units to let with
immediate vacant possession,

from 13,500 sq.ft.

The Bilton Fairway Estate,
Greenford

Units from 5,500 sq. ft. to 82£00 stf . ft. to be
let with Immediate occupation.

The Mayiands Wood Estate,

Hemei Hempstead - -

Proposed development of 200,000 sq. ft ;
in mixed units to be let with occupation :
-winter 1982. ■■ s

Trinity Trading Estate,
Sittingboume, Kent.

New unrts of 5-15,000 sq.ft available-
immediately to let with potential of design ' '
and build package on available land
up to 25 acres.

White City Industrial Park,

London W12

Total remaining 150,000 sq. ft in mixed units
from 2,300-42,000 sq.ft, to let available .
Immediately.

Nine Elms industriaf'Estatej *
London SW8.

85,000 sq. ft remaining In unltB from. /

4,000 sq. ft to 57,000 sq. ftto Jet, available
immediately.

The London Industrial Park, .
London E6 .-

Tota! availability of 120,000 sq. ft. in units
from 4,000 sq. ft to 18,000 sq.ft to let with ‘
Immediate occupation.

Beddington Trading Park (\Afest)
Croydon

New units designed to a high specification In
sizes from BfiOQ sq.ft to 137flOOsq. ft ' /

To be let with immediate Occupation.

-» ---1:

‘ V » .'

V . '

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: f - -

*-• **. "** w l

For further details of these and other properties in the UK&mfy to

V it

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Financial Times Monday June 28 1982

'■j*

°fl|

states

ith

By Reginald Dale,. U.S. Editor, in Washington

.WASHINGTON' W&L fc e a;
ifedjer place ■ without Alexander
'Haig: For;al JbSs faults— and
his-enemies would say they are
. legtpn-rhfe stood nut -as a
ccfoorftfe often . enrertanung;
and invariably TZ&nredfctable
..character. - • .

VtS 8 cor0 ® rte ^ .use of fiie
togaage and hJspocr
jwQBs <a Beagan- administration
/ specSBty ) sometimes made it
HtyttftlM e to decipher the pre-
JcSd ; thrust . of American
foiefen policy. At his priblic
appearances, it was never .cer-
.taiu in advance ■whether
• he was going to talk gobbiedy-
-gobk or . actually say some-

fetog -quite sensible. Whether
one agreed ’ or disagreed
with Mm, the combtaatktns was
somehow endearing — and he got
a loud and obviously genuine
ovation when he appeared before
State ■ Department staff and
journalists^ to announce 1 his
abrupt, defiant resignation as
Secretin? of State on Friday.

Clearly, to use one of Mr
Haag's favourite words, the
style of U.S. foreign polity, if
not the content, is going to be
different under the more con-
sistent and level-headed Mr
Geozge Shultz, who, as it hap-
pens, is one of Mr Haig's old

friends.

A1 Hadg often seemed his own
worst eilemy. Like many people
in Washington, he is vain, proud
and ambitious. The problem is
that he lets it show all too
obviously, often in petty ways.
On President Ronald Reagan’s
trip to Europe ealier this month
— which, in retrospect proved
the beginning of the end — he Is
said to have complained about
the Beat he was assigned aboard
Air Force One (the presiden-
tial Jet), his position in receiv-
ing tines, Ms be&copter, and the
rooms he«and his staff were
given at various stopping
points.

On a broader scale, the same
characteristics made him obses-
sive about the acquisition of
personal power, and- in particu-
lar, of sole and exclusive con-
trol over American foreign
policy, of which he claimed to
be .file “vicar "

Hie was the moist prickly and
combative member of the
Reagan cabinet, getting into
aggressive, and sometimes un-
necessary: “turf- fights” from
Ms first day. He often seemed
irritated by the fact that, under,
the American system, the presf- -

■'••v/v.

SfelSiJ

**■* * tJ. '* % ^ ** s

■ ; • * /^ir v ^T‘ . ‘K ,• ■%

ALEXANDER HAI G
Hie lone moderate

dent and not the secretary of
state is the ultimate arbiter of
foreign policy. He was not, as
Mr Reagan -expects his staff to
^be. a “team player."

By the end, he had become
increasingly a loner. He had
.fought bnusingly with the
White House, with vice-presi-
dent George Bush, with Mr
Caspar Weinberger, the
Defence Secretary, and with
Mrs Jeane Kirkpatrick the
U.S. Ambassador to the United
Nations.

Most crucially, he had be-
come distanced from Mr
William Clark, his former
deputy who was promoted to be
Mr Reagan’s national security
adviser in January, . and has
since become more and more
influential. Unlike his successor,
Mr Shultz (and Mr Clark and
Mr Weinberger), hB has never
been an intimate - member of
Mr Reagan’s . Californian
coterie. ■

“ Turf fights,” particularly
between the State Department'
the Pentagon and the National
Security Council, are the rule,
rather than the exception, in
American administrations. But
Mr Haig's personality made: him
stand out in a Washington 'in
which the first requirement is
loyalty to the President and the
second an ability to get on with
Mr Reagan’s kitchen cabinet of
right wing backers and advisers;

-. It . was not, of course, just
a : question of - personality,'
although that was seen as the

‘ RONALD REAGAN
Felt uncomfortable

major factor by many of Mr
Haig’s opponents in the. White
- House. Mr Haig, with his repu-
tation as the lone “ moderate ”
in the - cabinet, was intensely
disliked by .the influential
“America first” right-wingers
around Mr Reagan, who
regarded him as a “ wet’’ They
thpu^it that Mr .Haig was soft,
on. an' increasingly neutralist
Europe, soft on comzukjioism and
-particularly soft on. ‘-Red
-China.” •

But their influence is not all
pbwerfuh They are defighted'to
see Mar Haig go. They are not
. .at all delighted that he is being
succeeded by Mr Shultz, who is .
also seen as- a “moderate” by
the arch-conservative standards
of. today’s Washington. “ Out of
. the frying pan, into the fire,”
one of them said yesterday.

The irony • is that until
1 recently Mr Haig had been win-
ning most of- his battles in
Washington. His influence could -
be seen in the milder tone of
Mr- Reagan’s anti-Soviet rhetoric,
the backing of Britain over fhe
Falkland Islands and the refusal
~to condemn Israel’s invasion of
the Lebanon. Mr Haig believed
that -public withdrawal of U.S.
backing from Israel, of which he
is a strong supporter, would
only stiffen Palestinian resis-
tance,- lead to even greater
bloodshed and not further U.S.
interests. ' •

But a scrips of events -in the
last- few days turned the scales
against him. In addition to the

CASPAR WEINBERGER

Former colleague of Shultz

minor irritations he experienced
on Mr Reagan’s European trip,
which included getting on badly
at a personal level with Mr
Reagan, Mr Haig felt that
exclusive control over foreign
policy was slipping further
away from him. The White
House, apparently on Mr Clark’s
advice refused to let him accept
an . Israeli invitation to
Jerusalem to- discuss the war in
the Lebanon. And, as the -blood-
shed mounted, Hr Reagan, ' Mr
Weinberger and Mr Clark
became -more and more uncom-
fortable with Mr Haig’s policy.

It also looked as if Mr Haig
had been duped by the Israelis
into believing that their forces
would go no further than 25
miles into the Lebanon to estab-
lish a cordon sanitaire. The
White House started conducting
Middle East policy beginning to
lean slightly more strongly on
Israel without consulting him.
In Mr Haig’s view tins resulted
in dangerous “ mixed signals ”
to the combatants. The White
House and Mr Weinberger
believe that support for Israel
should not go to the extent
of jeopardising Washington's
relations with the Arab world.

Most humiliating for Mr Haig,
-however, was Mr Reagan’s
decision 10 days ago to extend
U.S. sanctions against the pro-
jected Siberia-Western Europe
natural gas pipeline by trying to
prevent U.S. subsidiaries and
licensees abroad participating in
its construction. Mr Haig’s oppo-

sition to' the extension of sanc-
tions was well known.

Since the decision, admini-
stration officials have been going
out of their way to. stress that it
was thoroughly consistent with
the line Mr Reagan has taken
all along, implying that even the
most simple minded could have
foreseen it -

And yet It went through -at a
snap meeting of the National
Security Council when Mr Haig
was away at the United Nations
in New ' York— a move
reminiscent of President
Carter’s decision to' launch the
abortive Iranian hostage rescue
mission, when the then Secretary
of State, Mr Cyrus Vance, was
out of town and unawares.

The administration insists
that the pipeline decision is not
directed against Western
Europe, but against the Soviet
Union, as a stepping up of sanc-
tions in response to -its be-
haviour in Poland. In opposing
it, however, Ur Haig was being
pro-European, not pro-Soviet He
certainly shared the compre-
hensive ■ -anti-communist gut
instincts of the Reagan regime.

With- his going. Western
Europe has lost the best friend
ithadinfee Reagan administra-
tion (although that is not
necessarily saying very much).
The compensation is that Mr
Shultz is judged by those who
know him to be equally sym-
pathetic to, and understanding
of, Western Europe. Herr
Helmut Schmidt the West
German Chancellor is a close
acquaintance, and Mr Reagan
employed Mr Shultz among
other things, as an unofficial
roving ambassador in Europe to
prepare the Versailles economic
summit earlier tins month.

The White House- insists that
the replacement of Mr Haig by
Mr Shultz does not mean any
change in the Administration’s
basic _ approach to foreign
affairs.

What ,it almost certainly
means, on the contrary is that
Mr Reagan wants his policies
carried out in a less trouble-
some and disputed manner. The
popular Mr Shultz is a “ team .
player.” A former Treasury
secretary. Labour secretary
and Budget .director, he has a
reputation in Washington as a
loyal executor of Administra-
tion policies even if he dis-
agrees with them, and he is a
member _ of the California
Mafia.

As a former close colleague
of Mr Weinberger at the
Bechtel Corporation, the giant
private California engineering
and construction multi national,
the White House clearly hopes
that Mr Shultz will be able to
smooth relations between the
State Department and the Pen-
tagon. That remains to be seen.

Mr Shultz will not appease
those- conservatives who wanted
Mr Haig's head on a platter. To
many of them he is even more
suspect. He is on the record,
for example, as opposing trade
sanctions — one of (the Right's
favoured weapons against the
Soviet Union. Nor will he

appeal to the powerful Jewish

lobby, which regards torn, and
Mr Weinberger, as anti-Israeli
in the light of Bechtel’s exten-
sive links with the Arab world
and Saudi Arabia in particular.
He is likely to be closely ques-
tioned os the issue when he :
faces confirmation hearings in
the Senate in two weeks' time — :
although his confirmation is I
hardly in doubt

It is his supposed pro-Arab 1
tilt that has prompted most of !
the speculation in the last two
days about a possible shift in
UH. .policy in the Middle East
Despite his company’s connec-
tions, Mr Shultz is said to , be
“even-handed” in the matter.

.While Mr Haig's previous
experience of foreign affairs
was gained primarily through
his military career, Mr Shultz’s
international experience has
been largely economic. That is
a dimension which Mr Haig
notably lacked. It wiR be all the
more use io that two of the
State Departments most senior
experts in international econ-
omics. Mr Myer Rashish and Mr
Bob Hormats. have recently
resigned.

America’s allies will be hoping
that with Mr Shultz’s arrival
on the scene they wall still have
a friend at the head of the
traditionally sympathetic State
Department, but also that with
less interdepartmental infight,
ing they will have a better
■chance of knowing whom to
believe when policy is enunci-
ated. In the end Mr Haig lost
his fight to be the sole spokes-
man for the U.S. in world affairs.
Mr Shultz is still an unknown
quantity in his new job, but he
will almost certainly be much
closer to Mr Reagan than his
prickly predecessor.

Job-creation by
lower wages

By Ian Hargreaves

THE GOVERNMENT, it seems,
is losing confidence in one of
its most deeply cherished labour
market theories: that Britain's
youth unemployment crisis can
be solved, in pact, by driving
.down the wages paid to yotmg
people.

It may have been mainly a
case of realpplitik, but Mr
Norman Tebbifs agreement last
week to increase the trainee
allowances for the new youth
teaming scheme from £15 a
week to £25 a week is really
the first concession (he Govern-
ment has made in this debate
since systematic evangelisation
on the subject began last
summer.

pretation. Makehaan’s own data
shows that earnings of males
under 21 rose as a proportion
of the average male hourly rate
from 46 per cent in the mid-
1950s to almost 62 per cent in
1976, before levelling off. Man-
power Services Camsmsskm
figures, taking the under-ISs
(more relevant in a sense, since
18 is the age of majority) show
no change from the 43 to 44 pier
cent range since 1974,. which is
of course, when the chronic
build-up in youth unemployment
started.

Survey

Rates

More significantly, it was
rather noticeable in Mr Tebbitls
remarks m the Commons that
he had nothing to say about the
Young Workers' Scheme — the
programme hand-crafted by
Professor Alan Walters, the
Prime ' Minister’s economic
adviser, which subsidises em-
ployers on condition that they
employ young people ait certain,
relatively Low, rates.

The reason for this change of
tone, one suspects, is the
niggling question of evidence.
Department of Employment
researchers axe having some
difficulty arming ministers with,
the material they need to
defend their point of view in
anything other than what Mr
Tebbit .would call a common-
sense fashion. .

Changes

A running sore for the
Government in this research
conundrum has been a Depart-
ment of Employment paper
called “ Youth Unemployment "
written by. Mr Peter Makeham
in 1980. That contained a state-
ment, since featured in
numerous - ■ anti-Gove rnment
pamphlets on the subject, that
“ variations in youth unemploy-
ment do not appear to have any
systematic relationship with
changes in the relative earnings
of young people.”

The figures themselves, like
most figures, are open to inter-

Mr Tebbit has had his junior
ministers write to some of the
pamphleteers talking of up-
dated research to the Makeham
Study, but his department has
refused to make it public.

The latest research rat to be
scented concerns the Young
Workers Scheme itself, which
for several weeks the Depart-
ment’s officials have been cheer-
fully stating to be too recent to
have permitted any statistical
analysis.

It transpires, however, that
last December, during the first
major batch of applications, a
survey of several hundred com-
panies was carried out, designed
to test not the effect of the
scheme on pay levels (it
reallv is too early to judge that)
but the extent to which it has
helped create jobs as opposed
to subsidising jobs which would
have been there in any case.

Thus far, the department,
although it now acknowledges
the existence of this study-
completed several weeks ago—
has refused to disclose any of
its findings.

Expensive

Until it does, the rest of us
will be inclined to believe the
rumours among the pam-
phleteers that the scheme has
in fact “created” less than one
job for every 10 it has subsi-
dised. Which would make these
young people the most expen-
sive shelf-stackers in the his-
tory of the Sritish grocery busi-
ness.

Letters to the Editor

Housing needs more resources in the private sector

From the Director,

Souse Builders Federation
. Sir, — Your leader “Tax: dis-
L tortious in housing ” (June 231
raises a range of issues which
all deserve far more discussion
than you have given them.

“ Twenty years ago private
individuals held broadly the
same proportions, of their wealth
iq land and dwellings as they
did in company securities.” The
growth in home ownership since
I960, from 42 per cent to 56 per
cent is described as a .“none
"'too healthy change in the pat-
;:tem of investment preferences
; . of individuals,” The logical;
conclusion of’ your statement
must then be feat if the 53 per
"cent of households in rented
accommodation in -I960 had re- .
tnained in rented accommoda-
tion, then more individuals
would now own company securi-
ties. and Britain would have a
healthier economy. Or, in other
..'words, we would have a
‘ healthier economy today if we
?had built more state owned
v dwellings and fewer privately
'Owned houses. And/or perhaps
. ; jon believe we should not have
"bnilt so many bouses at all?
v-TSe growth in home owner-
alp is not “a quirk” of the
British tax system. It is. In
^Social tpvmSj the achievement of

a legitimate, preference ex:
pressed by millions of indivi-
duals and it has been a .de-
liberate policy objective sought
by governments of both major
parties. Nor is tax neutrality
between tenures a sensible
option when fee whole wei^it
of public opinion and Govern-
ment policy has for years been
behind the expansion of private
home ownership because of its
considerable individual, social
and economic benefits. . .

There is growing, consensus
outside Westminster that borne
ownership enjoys znbre than its
fair share of tax relief.” Where?
Among which groups? There
is certainly no such consensus
in the nation at large, least .of
all among fee 12m households
who own their own home, fee
5m more who aspire to own
their own home, or the 500,000
people who have applied to buy
their council bouse.

' Shelter Is among the most
vocal in pointing out fee ex-
tremely low level of new house
bunding and ‘ the apparently

ala rming deterioration in fee
existing housing stock. One
answer to this situation is to
expand home ownership: still
farther. This answer, is not only
good economic sense, but it fits

In well jvifti meeting .fee over-
whelming desire of people in
this country to own their own
home. Another answer; pro-
posed- in various forms by
groups such as Shelter and
those on the Labour left; is to
expand the rented sector, either
public or private. The only
problem .wife this answer is
that it is^bad economics, and
will produce a result which is
in direct opposition to fee de-
sires -of fee vast majority of
-people.

Souring in tins country needs
TOore resources diverted into the
private sector, not less. It needs
more attention to ways of mak-
ing the benefits of home owner-
ship. available. . to those at
present forded into rental ac-
commodation, not less. And it
needs less attention to be given
to groups representing minori-
ties such- as Shelter and more
concern for informed debate on
new ways of ensuring that more
houses are 'built of a type,. at a
price, and In a form of tenure
which meet the needs and
preferences of those who will
live in them. .. You: contribution
to this debate is, to say the least,
inadequate.

J. R. Humber. .

82 , New- Caoendx&h Street, Iff/

^o&s-Channel

fei fa ...

From Mr A. Gueterbock [
vfSir,— Mr Groves (June 15)
Attempts to correct some of the
"Serious misconceptions” which
'Were contained in my recent
;.critiqne .of British Steel's Euro-
Route scheme for a fixed link
between Britain and France.

'I cer tainly do not have any
misconceptions in respect of his
oft-quoted comparison of Euro-
Route with the Chesapeake Bay-

Bridge Tunnel in the VS. A
more disastrous example of this
type of structure would uot .he
■easy to' find. Since it was built,
some 17 years ago* several ships
■have collided, wife bridges^

. turns' resulting- in this major
transport 'link- being complete*? -
. dosed to traffic for periods of
■Weeks at a time. The longest
.dbsore, I believe, was 42 days
: ia l&70 when a V-S- Navy vessel
’ was in collision with the bridge.

‘ - As EuroRoute would success- -
fully' pot fee ’short-sea route
fa^^qpefatajsjout
•.*t- would .'not ^difficult -to
imagine fee chaos which would
readt wife fee UK being cut

off from - fee ■Continent for. such
a length of time./'

Mr Groves says it is- * illogi-
cal” of me .to claim that a twin
rail tunnel will have the same
road traffic 'capacity as Euro-
Route wife its two-lane dual
carriageways. I will extend my
so-called illogicality a stage
further, by claiming that such
a tunnel would have a road
traffic - capacity superior ’ to
EuroRofltel

The peak hour capacity of
the Channel tturnel’ roll-on roll-
off vehicle shuttle service Is con-
servatively estimated, to be 3,500
road vehicles in .each direction.
The maximum peak hour capa-
city for two-lane, dual carriage-
ways is only ^200 vehicle? in
each direction (DOE H6/74);-
but EuroRoute could not
achieve . anything. . like this
design, .capacity. - Traffic flow
would be interrupted by toll,
immigration and .customs check-
points on fee first Island and
seriously slowed in ' negotiating
the road spiral down to the
tunnel at sea-bed level and the
second -spiral' from -fee tannet.
up to : the .trther- iriand. f

The recently published
Erahco/BritiEh joint, report on

' fee '"constrabtioh. . oil/a/, fixed
Channel link concluded “ . . . fee
balance of advantage lies wife
bored twin railway tunnels (ie
seven 'metres in diameter) with"
a vehicle shuttle service, con-
structed, if necessary, in phases. '.
. This solution would appear to
. be in fee -broad interests of both
countries; since it would offer,
a secure means of transport, it
Would he;;, energy _ saying in .
operating and would not
adversely affect employment;

. The choice, therefore, within'
; the foreseeable fotnre 'is not
- between a fennel and a com-,
bihation of bridges, islands and ’
tunnels but between, a tunnel
and continuing to rely on the
sea feny; services.. .There aw
many motorists, we believe, yrho *
■would find the prospect of sit-
ting in. fee -comfort of. their;
own vehicle and being “ chauf-
feur driven”" by courtesy of fee
Channel tunnel vehicle shuttle
service for ihe 35-hxUratfi cross-
Chaanel; journey, “•.not un-
attractive. ■; . - -

A u F. Gueterbock,

Channel Tnnfael Developments •

(1S81).. : _ „ ...

27 Hammersmith Grose, W6L

Accounting

convention

From Mr F. GLenister.

Sir,— Mr Dickson (June 15)
highlighted one of several
adverse economic consequences
of accounting. These are fee
issues of dividend cover, interest
cover and taxation.

There is evidence feat direc-
tors base their dividend policy
on their reported accounting
profits typically having,' say, a
40 per cent payout ratio. It
also seems likely that banks and
other lenders base their lend-'
ing decisions on profit figures.
Unfortunately both ' dividends
and Interest payments are cash
-transactions whereas the re-
ported profits of a company,
whether historic or current cost
profits, bear no simple relation-
ship to its cash flow and hence
its ability to meet these obliga-
tions. In most cases it will
be found feat fee historic cost
profits overstate company cash
flows, especially duzfeg times
of either expansion and/or Infla-
tion which both demand fan
increased investment in work?
ing capital, while current cost
profits fall somewhere - in
between. If one wishes .to
understand the underlying eco-
nomic position of a company,
which' can not logically change
according' to the accounting con-
vention used, there is : no sub-
stitute for a cafe flow analysis
of the firm. Only such an
analysis will reveal the true
interest ; qnd. dividend cover.

In fee seme way our current
tax regime; taxes . company
profits rather than cash flows,
which re p res e nt fee true ability
of comuames to pay tax or not
The various adjustments avail-
able, such as 100: per cent first
year; allowances, ' do not fully:
offset fee .difference between
company cash flows , and coni-,

- pany profits. ■’When tax paid is':
computed as a percentage, of
. company .cafe Rows it is found
that different: /compeiies, even
.wiifoin fee 'same fodustty, live
in diff ere nt .. effective . tax
regimes. How can this be
equitable? - ■ ’■

■Mr Dickson ateo touches' on
-.fee. lack . of sense, displayed by
.directors, who continue paying
dividends which .need , 7 to .,be
financed either' from additional
borrowings or from raising new
capital. -There is nonsense hi
-fem, especially when fee pay-
ment of dividends triggers fee
payment - of 7 advaficed corpora-
tion tax which ’ may be
unrelieved to many cases, due
to the lade of - mainstream
corporatiou taxiiabifey, thereby
r^jresentiflg a leakage of feare-
rhokter wealth to. the iptaqd

Revenue. - !

'EranciS'Glwifeter;- -

I5_|^fdbnotrifc Rood, '

Within gton, Manchester.

-A BALANCING OF INTERESTS

Hotel Inter .Continental , London,

July 12 & 13, 1982

This two-day conference, which follows the publication of
the Cork Report, will examine the current state of the Law
and its practical applications and will pose the question ‘Is
there a better way?’. A feature of the programme will be a
comparison with American Law and Practice.

Speakers wiU include:

Lord Benson
Adviser to the Governor
Bank of England

Sir Kenneth CorfcssE
Senior Partner
Cork Gully &Co

MrSAWCarslake
Assistant General Manager
Barclays Bank p(c

MrF-GFfeher,Jr
Senior Partner&Head of
Commercial Practice
Hale& Dorr, Boston

Mr Muir Hunter, oc
Member of the Insolvency Law
Review Committee

MrWGMackay

Partner

Ernst &Whfnney

Tte Hon Thomas W Lawless

Chief Bankruptcy Judge
Bankruptcy Court, Boston

MrLRPincOtt,CBE

Former Chief Executive
Stone Platt industries Lid

-^BALANCING
OF INTERESTS

AHNANGLALTIMES

CONFERENCE

Tot 01-621 13S5 Telex: 2VWHC0fffGCabtocHNC0NF LONDON

Ptease send me further details of
BUSINESS REORGANISATION CONFERS! CE

Name

Company

Address

.14

Companies and Markets UK COMPANY NEWS

Knight Computer | Rowe Evans £6m

placing at 60p

Currently the company em-
ploys 250 people full time which
are put out on a contract basis
to clients. Assignments can last
up to five years though the norm
is somewhere between six and
12 months.

Knight's customer base takes
in a wide spread of industries
including hanking, insurance,
the oil sector arid local and
central government.

It also operates a small
recruitment service finding
permanent staff for its clients
and has pushed into the con-
sultancy field.

Within two years of starling
Knight the owners hranchcd nut
with an office in Amsterdam.
From there Knight services
Belgium. France and Germany.
There is an agency agreement in
Scandinavia.

THE THING HALL
I'SM INDEX
135.3 (-0.2)

Close of business 25/6/82
Tel: 01-638 1591
BASE DATE 10/11/80 100

the nine months to December
19S1 profits were back up to
£208,000.

The enmpany also estimates
that the costs nr setting up the
U.S. protect hi L profits In the
tune or £70.000.

Brokers to the issue are E. B.
Savory Milln.

• comment

London Shop

plantation deals

ROUT EVANS INVESTMENTS
will make an agreed £6.26m bid
for two private plan! al ion groups
as a means of acquiring a fuU

Stock Exchange listing for its
shares currently traded under
rule 163.

RET. which has plantations in
Indonesia and Malaysia, an.
nuunred that it will acquire the
capital it does not already own
nf J1.P. Evans and Co and Song-
kai Estates.

For t fie purpose of the acquis-
itions RE!. Evans and Sunket
have been valued at £2 21m.
£5 4fim and £l.R4m respectively.

REI will offer 1.307 nf its nwn
sham for every 100 ordinary
Evans shares. 6.7S1 shares for
every Jflfl Sunkei and 252 fnr
every ion Evans preference
share'-.

BOARD MEETINGS

TODAY

Interims; A’ G. Barr. Haniys. Vectis
Stone.

Fmab i: Barker and Dobson, Brown
and Taws*. Country Gentleman's Asso-
ciation. eleotroeompcnents, London and
Liverpool Trust. Marshall's Haitian.
Ttonrc*. Scm>e.

FUTURE DATES

Interim —

TSL Thermal Syndicate July 2

Finale—

Eqioty Consort Invest. Trust July 6

General Efectrc - July 1

Hovenn^him June 30

Fh.iJ.ps Patents June 30

Russell Bros (Paddington) ... July 2

It would also establish a more
favourable distribution of Us
investments between revenue
earning assets and those intended
to produce long-term capital
growth, it added..

Completion of the acquisitions
Is conditional on the granting of
a Stock Exchange listing. REI
expects dealing to start on July
20

William Press

The rer-ent rights issue by
William Press Group has heen
arrnptPd in respect of 15.063m
•.hares, nr more than 89 per cent.
The shares nor taken up have
been sold in the market at a
premium.

Consortium
take 75% of
Chas. Booth

AN ANGLO- Dutch consortium is
tn take a 75 per cent holding
in the Charles Booth property
croup with the aim of bringing
the company to the Unlisted
Securities Market later this year.

The capital injection will allow
Booth tn expand at a much faster
rate . said Mr Stanley Newman,
joint director.

F.T. Share
Sendee

The following security has
been added to the Share
Information Sendee: —

Stewart Nairn (Section: Pro-
perty). . '

SPAIN

19S2

June 25
Pncs .

High

Low

■

366

335

Banco Bilbao ....

.. 332

362

290

Banco Centra/ .

.. 290

32*

290

Banco Exterior

.. 300

337

506

Banco Hisoano .

318

115

110

Banco Ind. Cat. .

.. Ill

367

315

Banco Santander

. 332

233

180

Banco Urquiio

.. 180

335

252

Banco Virraya .

.. 382

250

216

Banco Zaragoza .

.. 237

180

103

Dree ados

,. ICG

Ewwno/a Zinc ...;

66.5

532

Fecsa

.. 83.5

Gal. Precado*

662

530

Hidrela

.. 62.2

iberduaro

KM 5

PstrofEos

,. 76.5

101

Petrehber

101

5.5

Se^sfiaa

.. 600

Tr/ctoa <ca

. »-2

=3.2 Un-gn Elest

55.2

This announcement appears as a matter of record only.

OLC

Orient Leasing (Caribbean) N.V.

( Incorporated with-limited liability in the Netherlands Antilles)

Kuwaiti Dinars 6 , 000,000
1 2% per cent Guaranteed Notes due 1 987

Unconditionally guaranteed by

Orient Leasing Co., Ltd. and Tbe Sanwa Bank, Limited

(Orient Lease Kabushiki Kaisha) (Kabushiki Kaisha Sanwa Gtxtko)

(Both incorporated with limited liability in Japan)

Kuwait International Investment Co. s.a.k.

Kuwait Foreign Trading Contracting Kuwait Investment Company (S.A.K.)

& Investment Co. (&. A.K.)

Danya Europe Limited Alahii Bank of Kuwait (KSC)

The Commercial Bank of Kuwait SAK The Industrial Bank of Kuwait KSC
The National Bank of Kuwait S. A.K.

Arab Trust Company KSC Coast Investment & Development Co. PJ5LG.

Gulf Investments Company B.S.CO. Kuwait Financial Centre S.A.K.

Kuwait International Finance Co. (KIFCO)

EQUITIES

lesuv

price

!Ss)«gJ

32 BO
*6
IBP
16
(260
{5t8

'SO .....
(87 igp. F.P .{29/6

- f7.J -

f.pJ ssm

F.PJ3COT

p.pjpew

F,P,|16 4
;FJ*J 4«
F.PJ -
F.JK.lBfb

(157

)105

600

140

F.PJ 2/7
IF.P. 2/7
.P.P.I4/7
'■F.PjW/6
iw.p2 —

( 1962

LOW

280

260

107

293

163

140

.98

185,

160.

121

530

996

•166

160

! BO

■took

$ D«n cars.

BOri 92
7*3 50
«...;42Q
...J M

1.501 90
-12

»McCBrtby*8tone...^a5

9MItes53 IDe, 112

Ori flame SA (USWJ5B)plQ
*Rarikj City ’A’ mvJ eg
•{■Ruddle (G,) 10p_. J186
Zambia Cort* Opr IBKj 30

-HS

jMUl 2.1 4.0118.8
bLfil SA 4.9JU
-U3.0 ' 2.4J 4.7 j ]i7

^bUB. 3J>! l.BjlB.8

.;b8-8 ' &b! 8.0)als
juQ.Ua tjj.Q JiW.1

"ibS^Toi

.'udSJ 1 4^' 2Jk 9.7
bGHto 2.2 j 4.S 93
b5jfl .1.5^9.1113
bXj5 1 2.6' &5&J)

FIXED INTEREST STOCKS

Imujni

prlsa

1982

25 !■«='

** pa 1

1100 I

*100 I

*09.0*1
*100 j

101 J

7100
88 ,58;
*100 ;
(100
1100
100 1
9S.5a&
▼loo :
*100 •
4100 1

NU ,

£20 25/S

F.P.

14i7

1/7

High J tow

.w,

851*
1081,
,1461.
- >109

F.P. I 9/7 101
£35 J B/lffl 26 ,
F.P. i26/B 101*4

- 100TB

— 100

F.P.

FJP.

F.P.

£25

F.P.

r*.

F.P.

tMH

il07

92W

- iooi*liooid

_ r R4 *,

i * ,w i

- 47

• - | 45 ,

29(7 1 101*4

9*4

46
90 1*1

Stock

k-or

S-c

Oft

•Ben lax 8* Conv. Cum. Rri. Pt^. J 13 pm 1

Mli#- Southern Wtr. B% Prof. 1987 _ ^..101**
Nationwide Bd S . Soc. 1**«S »5/4?M>Il00W!
Do. 136lg(83/5/«afclOO.-i

- Do. IgftX (3/8/83)J100 Ik

NSW Zealand- 1414X 1987. — 1 24 J 4 I

BIT A Northern 4po Net Cum. Prf- £141
Do. 4w7pc Net Cum, Prf. £ll 46

[Wrexham Water 0% Red. Prf. ’87-89...H01*,

- 1 *

^3”

h- 1 *

“RIGHTS” OFFERS

Latest

Issue ! 5^ i Renuno.

prto*(.g3-' <Uta

f!p.‘ 27)4 28/9
NH-, - -
F.P. 1 18(5 24/8
' FJP. 28)5 9/7
F,Pwi8/6 sort

nn ■ — — '

P,P.'24J6 13/8
f.p.,-17/6 sort
NM , 9/7 13/8
f.pJ24/» asm
F.p.lio tt 10/6

10 Anmbachar (HO Bp.

18cm laop l led Comoirter Tach_._

ZBO fsank Leuml (UK) £l

. 198 earless Oapel 10 p J

218 [Grand Met 80p 4

espmicraat Northern Tel (£10) —

62 Press (WmJlOp

380 ISaatchi A saatohi lOp

aapm'Skatchley- : —

91= sturta 2 Op. 1

24 Young (HJ —

Financial Times Monday June 28 1982

PENDING DIVIDENDS

. De*

Acrow July 28

■Aisxwider*

- Discount- July 19
Aina*

CdloWS.. July 18
Allnitt

- London;.. July 16
Aaaoc iatati
-Nswepapors. July 15
Ault & Wjborg Aug 5

'BPB tods June 30

Bank

Leuml (UK). .July -27
Bath and

Portland.. -July IS
*Bilton (Percy) July 28
Brawn. (John) July 24
Barclays

Birllu.iAug - 9
"Cable and .. •

Wirslsss...Ju|y. 13
Daily Mall &

Gen Tst.. July tE
Davy Coipn— July 23

Dlstiilera ' July 16

Dixons

Photographic.. Juiy 30

•Dowry i., July IS

“Etoctro- ' . ..

Cam po'n ante,. Jons 28
Fitch Lovell ..July 30

Gseratner July 18

Glyttwed ......Aug 5

Granada ...-~July 1

• GUS July 16

TGraans king L July 1
•RAT Group ..July 13

Ha atom era

Eaiatss- July 16

HHtords Aug 3

ttogg..

Robinson.. July 21

• Hoover' Aog 6

An noun ce-
ment last

year .
Fine! 0-75

Int 5.5

Pinal 2iQB7- .

Final 3.4

lflt-4.5
Int 05
Final 5.0

Int 3.1B

Int ‘2.0
Final 4.4
Final 2.5

JPt 10^'

Final due.

int 11.0
Final O
Final 7.76

Fids) 2. TO
FFnd 2JB r

Final

Fine) 3,71
Int 125
Int 2 AS i
Int 1.75
Final 8.0
Final 4.2
Final 1 25 .

Final 4.rt
Final 3.75

Final 3.0
Int doe

Antiounce-
Dacs mant last

Illingworth

Nl orris.. July 17

ICI :..July30

•linparisl -

■ Cent Gas. .July 8 Final BJ
' Imperial* “. . ‘ ...

Group- JtHy.-B
Initial. ........July »

•International '

Timber.. June 30
*LRC Intsmri.. June
La* Service -..July 30
•Uoyds Bank ..July 23
Lonrho :.......July 30

MFI Furniture July 23
Magnet end .

Southerns... July 14
•Meyer •

(Mont L.)...June 30
Midland Bonk July 31 ..

•NatWast July 27 . Jnt 9.BH

' *NorcrDj j ......June 28 Final 3.5E

‘ Nottingham

Manf.. July 27
F reedy (A.) ..Aug 3
•Rank

Organisation. ..July 12

Rantokii Aug 5

Rothmans

Ind.. July Iff Rnal 2.65

•SG8 ' .:.... July 5 Int 2.3

•Scortish & Nowc.

Browaries...July 1
.Thom. Bril .....July 10

Unlgau July .19

♦Union •

Discount,. July 21
.Vsntons July 28

' Wagon

industrial.. Jkup 4 Huai 3.0

♦ Board masting Intfmstsd: t Rights
issue since made. 4 Tbjc Irss. S Scrip
Issue sines mads. ‘1 Forecast.

Final nil
Int 9.0

Int 2.75
Final 625

Final 2.0
Final U
Int ZB
Int 8.625
int 3.0
Final 1-52

Final 3.0

Final 1J5
Int 8.0

lot 1.1
Final 2.75

Int 421 '
tor 1-Off

Final 2.875
Final 10.579
Final 40

tot 9.0
Int 3.0

M. J. H. Nightingale & Co. Limited

27/28 Lovu'Lsne London EC3R 8EB

Telephone 01-621 1212

antra

ipitaTisadon Company

. 4.044 Ass. Bn*, tod; Ord ; -

Asa. Brit. Intf CULS.,«

• P/E ‘

Change -Gross YIe/d Fully
Price on weak dtv.(p) % Actus] taxed

120

127xi

— 6.4 5J 10J 13J
-1 10.0 79 — —

4.110

. Afrapiung Group ..

‘71

0.1

8.6

SJr 13S

• 1.075

Armitage & Rhodes ...

* _

10.0

■3.6 8.1

13.503

Bardon Hill

221

9.7

4.4

10.7 13-1

1.375

CCL 11 pc Conv. Pref...

110

15.7

1*J

— • —

4.189

Cindloo Group

265

•

26^J

10.0

10.7- 12J

4.643

Deborah .Service* ....

8.0

10.0

3.0 ■ 5.B

4.143

■: Frank Horaslf

130.

8.4

4.9

11.1 24.1

10.690 '

' Frederick Fatkar

— -

B.4

8.6

38 1Z

378

. George Blair

—1 - —

—

' —

3.9B0

Ind. PracisioR Castings

— 7.3

7.4

7.1

10.7

?»au>

Isis Conv. Pref.

107xd

+2 15.7

14.7

—

2.667

Jackson Group

107

+1 TS

7.1

8.7

16.148

James B a trough

117

+4 9.6

8.5

2.340

Robert Jenkins.

230

— -31.3

13.6

3,660

Scruttons "A” ■_

+24 5.7

8.0

9 Z

11.1

3.783

Torday & Carlisle ..—

155

+1 11 A

7JJ

11.9

3CTH

Twlnlock Ord. ............

'164

+ 4 —

—

2.157

Twinlock ISpc ULS......

— 15.0

19.0

—

3.815

Unilock Holdings

— 3.0

12:0

7 A

10.504

Walter Alexander

-1 6.4

7.7

9.7

5^484

W. S. Yeates

235

— 14.5

6 Z

6.2

12J

Prices now available on Praaial page 48148.

77 bt advertisement complies with the requkematls of the Council of. The Stock Exchange.

•i .

SCI FINANCE IM.V.

'(Incorporated in the Netherlands Antilles)

/ _ • . _ ' • . _ •

U.S. $12,000,000

10Vi% Guaranteed Convertible Subordinated Debentures due July 1, 1997

. • Issue Price: 100% • ", '

' The Debentures u/Ul be Vnoondi&oaalty Guaranteed on a Subordinated Bass by

SCI SYSTEMS, INC.

(Incorporated in the United States qf America) ■

The following have agreed to subscrSte or procure subscribers for the Debentures: . .

* Dominick & Dominick, Limited R. Nivispn & Co.

Robinson-Humphrey/American Express Inc. •

The Debentures in the denomination of U.S. S 1,000 have been admitted to the Official list by the Council of Tbe Stock
Exchange subject only to the issue of the temporary global debenture. . . - -

Interest is payable semi-annually on January 1 and July 1 beginning January 1, 1983.

June 28, 1982

Dominick & Dominick Ltd.
8 Little Trinity Lane
London EC4Y2AA

R. Nivison & Co.
25 Austin Friars
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•Authorised
£ .

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ARGYLE TRUST PLC

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Issued

£L

5,157,612

H am bros Bank limited,
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Hoais Govstt limited,
Haroo House,

319^325 ffigb Noffiom,
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limited
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Financial limes, Monday June 28 1982

Companies and Markets

INTERNATIONAL CAPITAL MARKETS

EURODEPOSITS

I INTERNATIONAL BONDS

Quality issues attract bargain hunters

traditional rate pattern

VENEZUELA’S decision three
weeks .ago not to raise a Euro-
awSt on margins related to
US. prime rates turns out to
have been curiously El-timed..

Venezuela rejected tiie credit
on. the basis of the conventional
Eurom arket 'wisdom that prune-
based. borrowing is mope expen-
sive than that based on the
London interbank offered rate
for Eurodollars (labor). -

■ Normally Libor stays below
prime, sometimes by more .than
half- a point and, although
. precise difterofliais are a
ra d tor of great controversy, one
U-S*' tank economist calculates
that- the difference between
average prime rates’ and aver-
age Labor in the two years to
May was actually greater than
1 per cent.

Tot since the. Venezuelan
decision, the two . rates have
moved unusually close together.
Friday even saw the rare
phenomenon of six-month Libor
being quoted at 16$ per cent,
which .was above the prevailing
prime rate 1 of 16$ per cent

In pat this merely reflects
.tile teebmeai situation hi the
market. The two rates have
always tended to move closer
together ait times when interest
rates are rising and tids is all
the more true nowadays since
U.S. banks seem to regard prime
as less of a benchmark rate
which has to be altered rapidly
in response to market develop-
;menhs than they mice did.

EURODOLLAR !
YIELD CURVE L
25th June1982 [

months

! K;-THE. EuWterod markers
^ake-ont over? Not just yet,
according to 4 . number of sew
issue managers, dealers, .and
institutional investors. ■ -
After, a- mofalh' ;of steadily
declining hood prices and rising
yields, the worst may be past,
-but the Euromarket is still sick.
Eurodollar bond prices have
■fMJen by nearly -8 points since
the beginning -of this- month,
the Euro-D-mark. bond, sector
by more' than 4 points, and the
Swfes irane '. foreign bond
market- -by -around 3 points on
average...

'. The main result of all ‘tins—
beside the trading losses and
sleepless', nights which many
Euromarket, participants ..have
been suffering— is’ that several
quaflity bonds . are now selling at
attractive prices. The bargain
hinders have' started to pick
andOhoose. . #

The large institutional in-

vestors who manage blffinns of.
dollars of funds 'appear to be
buying selectively, under-
scoring again the increasing
quahty-consrionsness of the
Euromarket With this hr mind,
many ta Europe have welcomed
the news that - Standard -and
Poor’s 1 vyill begin rating Euro-
bonds immediately.

The. yields' on several quality
Eurodollar issues are now
between ‘ 15s and 16$ per cent
and it is these bonds which are
attracting the buying interest.
One European institutional
investor. with/WeFT over $lbn
worth, of funds .put it this way
last week: ■ “There are only two
ways this market operates— out
of fear or greed. We are now in
the fear phase and it is time to
buy heavily where there is
bbeapness and quality.”

. This investor, like many
dealers, believes that the sell-
off has been overdone. This is

not to say that the market Is
heading for a major rally, but
rather that the knock-down
quality issues must not -be
missed.

Alongside the quality bar-
gains, however, are the Triple
B and Single A-rated issuas now
yielding close to 17 per cent.
Nothing illustrates the two-tier
market as well as the experi-
ence of Morgan Stanley with
its Ohio Edison five-year $5Qm
bond. '

The • Ohip Edison . paper —
rated triple B-minus by Stan-
dard and Pool’s and single
B-double-A by Moody's—
carried an initial coupon indi-
cation of 16$ per cent at a dis-
count price. It was priced last
Thursday at 17} per cen£ and
par. The issue was increased to
$75m and Morgan Guaranty was
brought aboard as a co-lead
manager.

Morgan Guaranty, is said to
•have taken- care of more than
$30m of the Ohio Edison issue,
thus helping it along. The 17$
per cent coupon did the rest.

Back in the premier quality
range, some French names
appear to have suffered from
the strength of the U.S. dollar
against the French franc. This
has encouraged European inves-
tors looking for exchange rate
gains to sell the bonds of French
state entities whose credit rat-
ing may be affected by an
increased debt service burden.

The Electricite de France 11$
per cent 1990 issue appears to
bear this out A large selling
order on Friday brought the
EDF issue down $ points to
77$, yielding 16.41 per cent
The order is said to have come
from the Continent

Likewise, the Caisse Nationate
des Telecommunications (CNT)

9$ per cent 1956. bonds have
lost around 2$ points over the
past fortnight end stood at 812
last week before -the bargain?
hunters started buying again.

Where else were the bargain-
hunters active? Zero-coupon
bonds, having been knocked, for
six like everything else in
recent weeks, are again attract-
ing substantial interest. Arco’s
zero issue increased 1$ points
to 262 by Friday,, while the
Campbell Soup zero bond went
from 24$ bid to 26$ bid last
week.

Meanwhile, the West German
foreign bond market remains
in the doldrums. The two-week
freeze on new issues expired on
Friday, but few offerings are
expected, given tire state of the
market.

Alan Friedman

the present distortion of the
traditional relationship between
prime and Libor. Basically,
liquidity in the Euxodeposit
market, which is the lifeblood'
nf the Eurocredit market, is
much tighter than at was a year
ago, they say.

Fewer OPEC funds

Distorted relationship

. The chart shows how expecta-
tions of a further rise in
interest rates have distorted
the relationship between three-
and six-month Euro deposits and
very short-dated periods - For
m u c h of. the past .two weeks
there has been a gap of some
two points between six-month
rates and overeight money as
Investors anticipated an immi-
nent rise in the whole rate
structure.

Once the markets have
settled down, this gap sho uld
narrow again, and as the prime
rate should have also moved
baric in line with the market,
some bankers expect a reversion
to the previous relationship
between prime and Libor.

Other bankers argue, how-
ever, that unrieriying factors in
the Eurodeposif market may
lend a more lasting quality to ’

The most obvious reason for
this is the smaller supply of
Opec surplus funds to the
market, which has not been
accompanied by any reduction
in borrowing requirements
since many sovereign borrowers
face large interest bills on their
foreign debt and are findi ng it
difficult to maintain exports in a
world recession.

Some central banks have
actually been - drawing - down
their liquid reserves in the
Euromarket as loans have be-
come harder to obtain, and
has bad the effect of exacerbat-
ing the evaporation . of Opec
liquidity. A similar process has
also been seen with corpora-
tions, where cash flow has been
hit by high interest rates. ‘

Meanwhile the market, has
become much more q ualit y .
conscious in the wake of the
well-publicised debt problems of
Eastern Europe and the Falk-
land? crisis. -The- flight into
quality which has 'long been a j
featnrfe of the Eurocredit
market is now .also a. factor in
tiie short-term - Eurodeposit
market, bankers say. _ . . ,

One U.S. bank reports^ . for
example. . that ' institutional
customers have shifted -deposits
out of the Eurodollar' market

and ’into the “ safe haven " of
UE. Treasury BiHs. This is
despite a relatively large yield
differential, which on Friday
saw three-month UE- Treasury
Bills trading some 3.6 points be- .
low similarly dated Efcfo-
. deposits. • . .

Bankers stress that- there is
nothing resembling a full-blown
credit crunch in the Eurodeposit
market. Yet re ere ^baB -been -a
marked increase in what, the
jargon calls “ tiering ”, in
which some banks' have to pay
substantially more for .their
•deposits than others. *

: This has. particularly affected
banks from developing coun-
tries, - and especially - Latin
America in the'aftertnath of the
FaUdands crisis. Ironically, it
is precisely the banks which are
now being penalised in this Way
to which the bigger Euromarket
banks often turn in their efforts-
to place large syndicated credits
for Latin American govern- 1
ihents.

CREDITS

French borrowers see advantage in ECUi

Peter Montagnon.

SAINT -GOBAIN - Pont -a-Mous-
son, France’s , newly-nationalised
glass conglomerate, is. raising a
seven-year credit in the Euro-
market denominated entirely in
European currency units.

The credit, which is led by
Banque Nationaie de Paris and
Morgan Guaranty; Is for a sum
of ECUIOOm and bears a margin
of $ per cent -for the first five
years rising to f per cent for the
remaining - two. ’ Repayments
begin .after five years. . . J *

Saint-Gobadn already uses the
ECU ‘for’ Its Own internal
accounting, but, its use of .the
European. Community currency
unit for this transaction reflects
some .deepe^-rboted advantages
for * French 'borrowers ' at the
■moment. .

. . Since- the ECU already has a
French franc content, French
borrowers who use it are run-
ning a> less painful exchange
risk than if they borrow dollars.
•The French authorities recently
exempted ECUs from domestic

credit control restrictions as part
of an effort to encourage their

of an effort to encourage their
use.' ’ :

Yet . deals, denominated in
ECUs have remained- relatively
rare in the Eurocredit market,
despite a growing use of the
unit as a bank deposit medium.
Funding .the operation could
cause problems for participa-
ting banks if at the rollover
date they had no access to ECU
deposits. Lead managers will
undertake* to taake the ECUs

available if necessary to cover,
this eventuality.

The composition of the ECU
could also change during the
lifetime of the credit, and for
this reason banks are being
offered slightly higher margins
on the Saint-Gobain transaction
than would normally be ex-
pected on French state-sector
loans.

But France also has a political
commitment to the development
of the ECU in commercial trans-
actions, and three large state
sector banks are looking at ways
.of encouraging its use by set-
ting up a clearing house facility
for ECU deposits.

The Frenth credit was one of
the few new developments in
the Eurocredit market last week-

Elsewhere in Europe, a mandate
for Greece’s Public Power Cor-
poration was still awaited on
Friday, a week after bids had
been submitted.

Business has already
slackened markedly ahead of
the summer holiday period, and
the slowdown seems more com-
plete than usual this year be-
cause of nervousness over the
creditworthiness of Latin
American borrowers.

Another trouble spot, Eastern
Europe, is also coming slowly
back into the limelight Romania
last week repaired its relations
with the International Monetary
Fund, which could speed up its
rescheduling talks with com-
mercial banks, while Polish
debt negotiators are to meet

the banks again in the first half
of July.

Tbese talks, to be held in
Vienna, will involve preliminary
work on a 1982 debt reschedule
mg agreement They are going
ahead even though Western
governments still refuse to dis-
cuss official debt rescheduling. .

Poland owes Western banks
some $2bn this year, while
governments are owed around
$3.5bn. The country has paid no
interest on its foreign debt for
1982, however, and the banks |
are likely to press for some
interest payments at the Vienna J
talks even* though Poland has
said that it wants to capitalise
interest due in any 19S2 re-
scheduling agreement.

P M.

Borrowers
US. DOLLARS
Ohio Edison? -

Amount

Maturity

'Av. life
years

Coupon

ClBCTt

. SWISS FRANCS
Nippon Carbon**§?
Sumitomo Heavy***#
-- Gillette Ovs. Fm**J
Sperry Curacao NY**$
World Bank?

1987

1994

1094

5 ,

I7i

51+

“ Cl d>

100

100 v
100

Morgan Stanley, Morgan
Guaranty
.Samuel Montagu

CIRC. Hamhmc Rank

17050

l f 7*t

1987

100 *'

V. 1 U V MttUIIWe D<U|R

CS ■

1987

—

.100

SBC* * * 5

6.750

1988

—

100 *• '

SBC' — *• *

6.750

1989

100 ■ '

UBS *

7.000

1992

• "T.

100 .

CS' •

7-250

CURRENT INTERNATIONAL BOND ISSUES

Offer yield Amount

Lead manager % Borrowers • • ' m.

OKB. 100

Offer yield
' %

Borrowers

OKB

Av. life Coupon
Maturity- years % •

1992 — •

Lead manager

Wirts chafts-und
Privatbank

Offer yield
%

STERLING
New Zealand?
ECUs
SB •

SG Warburg

aumrcomo neavy^st 50 Iro/ — «■} ,iuu ■ ssl * . b./M irtiwAiTi nthiADc

- Gillette Ovs. Fm**f 45 1988 — 6} 100 ' ' SBC*-” 6.750 DWAR5

- 'Sperry Cniacao NY**? 100 1989 — 7 . 100' UBS* 7.000 :

World Bank* TOO 1992 — 7| 100. CS 7-250 YEN

- - — r. • i ■ i- j . .* ' * J Procter and Gamble?

' v l®rt' yet priced." t'Hrial terras. ** Placement; t Floating rata note. O MlninUm. § Convertible. Mote: Yields are calculated on A1BD baste.

Kredietbank Inti., Soc.
Gen, de Banque

KFTClC, uric. KiC 1X821

Daiwa Secs.

ARof these SeaariiiesImK been sold.Tlu8mnotaicetaeitt appears as amatter of recordonly.

U.S. $50,000,000

♦ . . •

Beneficial Overseas Finance NtV.

14V2% Notes Due May 19, 1987

With Warrants ho Purchase U.S. $100,000,000

14%% Notes Due May 15, 1992

Both'imcoiiditzondS^Gvmtmteedby

Beneficial Corporation

AH of these Securities have "bemsoVL This amiowiceirimt appears as a> matter of record only.

U.S. $200,000,000

Continental Elinois Overseas
Finance Corporation N.V.

. MORGAN STANIRY INTERNATIONAL ; -I.-.- I

BANQUE NATIONALS DE PARIS BLETHEASTMAN PAl NEWE BBERlNrERNATtONAL

COMMERZBANKAKT1ENGESELLSCUAFT CREDIT SU2SSEFTRST BOSTON

TtA m r a irr nfnvna. vyj.LSimAF T DGBANKDEUTSCBB 6SNOSSENSCEATTSBANK

MEEBJLL J2TNCH INTERNATIONAL &CO. MORGAN GUARANTY MXD

SAWMON BROTHERS INTERNATIONAL SWISS BANK CORPO RATI ON INTERNATIONA^

UNION BANK OF SWITZERLAND (SECURITIES) - : v S.G.WARBURG&CO.ZXB: '

Guaranteed Floating Rate Subordinated Notes Due

Guaranteed on aSubordinated Basis by

A TJDgMRNE BANK NEDERLAND NJZ AL-M

mUUS BAER INTERNATIONAL BANCAC

baixcantradeswitzerland (CX)

BANKI^ INTERNATIONAL BANKMEE,

nATYOPE mmTnmr.T.Ksi t.amrrrTSA.
ban^jegeneeaibwluxembourgsa.

BANQUE DEPAJ&ISET DES PAXSBAS

BANGVB PRTVEEDE C&STI0NF1NANc1E}sE u B2&F?

at m at. GROUP ARAB BANKING CORPORATIONJCABCI . J

BANCA COBMERCTALEITA LUNA BANC ADEL GOTTARDO

' BANK GVTZ WILDER, NBK S. B UNGENER (OVERSEAS)
BANKMEES&BOPENV BANQUE ARAB RET I NTERNATIONALE

BANQUE FRANC AISE DU COmfERCEEXTEEXEUR
[A. BANQUE 23ENEVFU2X^SC34UJMBEBC3SB,MjiLLET

BANQUE POPULAIRE SUISSE SAJLUXEMBOURG

RE tt B£GI? BANQPEWORMS . BAEINGmKffK^$&CQi \

Continental Illinois Corporation

BAIKEUSCSE BTPOTBEKEN-UNDWECBSELBANK BATERISuHE landesbank girqzzntrale

BAYKRIS CBE VKBEnt SBANK* ' BEA&8TEAKNS&CQ -. . ;

.m^imER^SfSSs^UNBFRANKFUKFJSSiBANK . tmmCALBANKWTEKNmOMLGBUlJB

CimPA<371EBNBANQt7EKFiyiNVESTlSSEMENTS,CBl COU NTYB ANK CREDIT CONMESCULDEFRANCE

ckedituomais daiwanqppb dillqn,bead overseas corporation

Z^pLnr KDBOMOBILUBBSyJL EUROPEAN BANKING COMPANY

MORGAN STAmiET INTERNATIONAL

CONTINENTAL ILLINOIS LIMITED

^r^JKANBACBsS^BNAXlQNALCORR BAMB^BANK mtoSAMU&XCO.

TBEEONGKONGBANK GROUP . . MDUmPEABO^EENAXlQmL KUB NWOm BENSON

KBKMETRANKNX. KFMA)TINTEia^ONALJNVESZMENTCQ.sJtA. mmAPPlNVESPMBST.COmANY^AM,)

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MORGAN GUARANTY DTD

BANK OF AMERICA INTERNATWNAL LIMITED

BABIN G BROTHERS & CO -LIMITED

CISC LIMITED

CBEDITSUISSEFIRSTBOSTONLIMlTm

GOLDMAN SACHS INTERNATIONAL CORE. KWDER t PEABODY INTERNATIONAL LIMITED

MERRILL LZNCR INTERNATIONAL & CO.

MORGAN GRENFELL & CO.LIMITED

SYENSKARANDELSBANKEN

SOasrSGEmMBDERMfQVBSJL SUNRUNGEMlNT^TMmTSKmCBSm
VEKE1NS- UND WESTBANK J.f6nt6jBKL&CO.

YEKEINS- UND WESTEANK J.yONTOBEL&CO.

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ORION ROYAL BANK LIMITED SWISS BANK CORPORATION INTERNATIONAL LIMITED

Imo$$i£98B

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Companies and Markets

~ • ^ ” T

international c apital markets and .^g#ggv

NEW YORK BONDS

Voracious Treasury

to test market

THE CREDIT market will be
tested again this week by the
U.S. Treasury, which plans to
seill*$4bi» of new four-year notes
tomorrow, to be followed by a
further §4im of seven-year notes
on Thursday— on top of a
regular $9ba weekly auction of
three and six month bills today.

Moreover, although the
Treasury will not be selling its
regular weekly bills on Friday
because of next weekend^
Independence Day holiday, it
will sell a larger package than
usual of three and six months
bills the following Tuesday,
when the markets will reopen.

Instead the customary $9bn
the Treasury is planning to sell
as much as ?lO.0bn in short-term
bills.

These imminent auctions are
an hors d’oeuvre of worse thin g s

U.S. INTfREST RATES {%)

Week to Weak to
June 25 Juna 18

Fed. funds wkly. ev. 14.35 14.38

3 -month Troaa. bills... 13.45

3 -monrh CD 15.51

30-year Troaa. bands 14.14

AAA Util 16-50

AA Industrial 16.00

Source: Salomon Brothers (estimates).
In the week to June 16 Ml fell S 2 . 3 bn
to S 451 . 9 bn.

12.67

15.00

14.19

16.13

15.63

to come for the market.
Treasury financing requirements
in the second half of this year
are expected by some market
participants to reach as much
as SlOObn. if not SllOhn.

The Treasury auctions this
week will give a further clue to
the ability of the bond market
to absorb such voracious
government financing demands.
The Government has already
all but crowded out corporate
borrowers, while utilities have
been forced to' continue
borrowing long, with issues
priced to yield in the 16 per
cent range.

After the dismal reception
given to the June Treasury
auction of $5.5>bn worth of two-
year notes, which drew only
. S9.1bn in bids compared to
SI3.3bn in a similar auction in
May, the market clearly needs
all the good news it can get to
. survive this week's Treasury
sales.

Some good news came last
Friday when the latest weekly
. money supply figures showed a
decline in Ml of $2-3bn— far
gresyrt than the $lbn decrease
which the market had antici-
pated. But even this, coupled

with' signs that the economic
recovery will be fragile and
will thus put less pressure than
expected on borrowing, did
little to lift the market’s
spirits.

HI and the broader H2
measure- are now running just
above the upper range of the
Fed’s targets this year. But the
market is increasingly con-
cerned that the Fed, which has
so far tolerated the deviations
in the aggregates, may feel com-
pelled to tighten up in the face
of the widely expected bulge
in monetary growth in July.
This is likely to result from a
number of special factors, • in-
cluding large cost of .living
increases in Social Security pay-
ments.

The Fed is again coming
under pressure from its critics
in the Reagan Administration,
for failing to maintain the
growth of the aggregates on a
stable course. And a renewed
spurt in Ml next month could
prompt the Fed to take some
action to correct any new money
supply bulge.

With Fed funds still trading
for seasonal and technical rea-
sons in the uncomfortably
14-15 per cent range, the mar-
ket will be watching with more
care than usual the Fed's mar-
ket operations in coming weeks.
Indeed, the Fed’s Open Market
Committee is due to meet later
this week to set not only short-
term money supply targets but
also the preliminary longer
term targets for 1983.

In general, the .market does
not expect the Fed to change
its current posture, although it
could possibly raise the upper
limit of its current Ml. target
band for this year, which is at
present 54 per cent. ‘ .

Nonetheless, with the Admini-
stration breotMng down . the
Fed’s neck, the market fears the
central bank may decide to
eventually tighten or at least
not to change the current tar-
get range. And this, despite
the need to adjust to the sav-
ings account factor, could be
perceived by a highly nervous
market as a sign that the Fed’s
monetary resolve was^ weaken-
ing. Against this . background,
everything appears to continue
to argue for irigh U-S. interest
rates— for the timp being at
least

Paul Betts

U.S. INSURANCE

new

THE U.S. life insurance
industry has been thrown into
a refined tizzy in the past fort-
night by a riding from the
Internal Revenue Service (IRS)
which appears to tin-eaten two
of the hottest products on the
market

In the first quarter of this
year, U.S. insurance companies
sold some $600m wflrth of
“universal life policies,” com-
pared with $70 Om in the whole
of 1981 That still - accounted
for only about 5 per cent of
total fife premiums in the latest
period but, -with the major
insurers now climbing on to
the -bandwagon, there seemed
every chance that tin market
Share would grow substantially
in the years to come.

A -universal life policy essen-
tially splits the Insurance and
savings element of .a traditional
contract into twp parts. The
insured pays one amount for
insurance coverage - and the
commission, white the- rest of
the premium is Invested into *
high-yielding fund where it

can generate a money market
type return,, tax free: •

At a time when traditional
low yielding life insurance pro-
ducts have been hammered by
the competition bnwgtt on by
high interest rates, universal
life schemes have been wel-
comed by some insurers.

Another big seller has been
fiie single premium tax deferred
annuity. .This is a . Hump sum
investment which, builds up
interest that is untaxed until
the buyer begins to withdraw
Ihe money some yeais later. '.

These products have .been
boosted by -high interest fates
and uncertainly about the
future of social security- the
U.S. Baldwin-United, a- Cincin-
nati-based finacial conglomerate,
sold SLSbn worth in 1881, up
from 8233m in 1980.

But the IRS has. now stepped
in. Excess interest— which is
generally taken to mean any
return of more than 4 per cent
a year which is credited to life
insurance reserves for certain

deferred annuity contracts— is a
distribution. -similar, to a divi-
dend, the RS said In a ruling
: last week .r r -: .

Insurers therefore might not
be allowed todaim a tax deduc-
tion on tiie excess interest,
element Similar constraints
inighta&d apply to that part of
a universal life contract which',
is not - guaranteed by ' the’
insurer—fiie interest . in excess
of 4 per cent - .

Most companies claim, it -is
too eariy to say exactly what
this wm mean to policyholders.
They point out that, existing
business is not affected since
the IRS has promised not. to
apply the ruling for five years
to pbtides existing as of last
Monday.

Hassacfausetts Mutual, one of
the top 20 U.S. life companies,
says the ruling, means, in effect,,
fiat if an. insurer wants to.
retain. a. measure of discretion'
about -how much it pays over,
to the policyholder,, the price
for that freedom win be that
the payment is not fully allow-

able for tax purposes.

The specialists in.taxdeferred.
annuities are .also, maintaining
Xcafeor front Baldwin-Urated
suggests that ’ its extra tax costs
this year might reduce its earn-
ings-, only by .about. 25 .cents- a
share.

Since .analysts projected an
increase from $7.50 to -$11 a
share before the news, that does
not sound like too grave a blow-
All. the same. Baldwin’s shares
have slumped from $60.5 to
-about $5L5 in the' past fort:
night.

*■ $he Treasury : Department,
which is responsible '.for tax
policy in the US^ says it is not
Opposed to tax deferrals. But
it adds that it had become con-
cerned that some, companies
were developing products which
would permit deferrals to be
exploited '-.more .broadly than
before, but the practical impor-
tance of the. IRS -ruling will
probably depend on the 'fate ^of
insurance, tax, legislation which
is now pending 1 on Capitol Bill.

Richard Lambert

|:yv

• ,‘r y.

provisions

•

1 jVWS 3,

BY YOKO SHIBATA JN TOKYO.

KAN3SBQ, THE, Japanese lex- ^
tile manufacturer wtri&i : has '
hem diversifying into fopd pro-
ducts. ; pfcaim aceuticais. v ]an A
cosmetics; has reported 0 . 35

per centot total sale^.fdown 6
per cent) ; wool tor 13.3 per cent
(up 7. pear cent); polyester tor
15.8 -per- .cent-.- (unchanged);
igdcii ter 10.5 per neat Xdqifoa-S

■Mi.

• V‘j- '(I**

i &

i. * f

iSiV 8 *

WOUitLiM, ” TTT— . --- T JT- — ■ - .. T V.' .’.r ** .

per cent jpmp in unconsolidated per. cent)> -ana acrylics :^ 7x
pre-tax profits -to YLlba (5&2an) : -per icent (do wn. 16 per cent^

in file y ear ended April 3i).

Duringthe year, tibfr c«®«ny'
absorbed teree • whoUyowned
non-textile subsidiaries, "Kanwo'
Cosmetics. . . Kimebo Dior, hod
Kanebo Dior Mdnaeufc . . As a
result, Kanebo’s totfr'.tnunw
gained Y20.5bn. or some-. 8 per
cent, to teach. Y276bh ($X.lbn).
After putting aside provmons

the - group’s * Xboittextfia
itereits, ! cosmetics . accounted
for :305 percent of; sates^tm 29
.per cenf)whlle.pharmaceuticalx
made up. 3.7.,per .cent (tip is .

per ceWJi '-: V .v,- ■

. Exports rose Wper.' cent to
make up 18.4 per. cent of .sates,

- Higher ^profitability - in * the
polyester division made up’ ter

tv.-’t-

against loan, tosses and reserves • less profitable operations in
the com pany fedi _ other' textile- -products.; .In .'the

for pensions, wc *»*. vm»v* — ■ - — -

into a net loss of YL9bn.,com- current-year Kanebo expeax~an
paced with the previous yw’s improvement of: profitability ip
net of y639nt . . 'cosmetics,' ;antf- f^smtos; and" in

■ MM'ierWw Y4.V2, ■? afket -; r|

-conroaredwith- the previoas.. Fall year. j?re-taxprofite are
year’s deficit of Yl.62. As; a expected to reach ypbh, up tjy
result the coHnpany is again not- :-85 per cent from tne previous
paying a dividend. ' " " “V : ; yeir;. on proje<^ sales -of

: Cotton-sales accounted for T309hn. '. •

- \l
■ ?Nfie .

| & • vt- '

, l* s

£5^.

I &

Chief for

MasterCard

worldwide

division

• Mr David M. L. McWllliam has
been appointed head of th e inter -
national division of MASTER-
CARD INTERNATIONAL, New
York, from August 1. He is an
assistant general manager at
Midland Bank with responsibility
for overseas treasury operations
and is a former managing
director (banking) of the Thomas
Cook group. He was seconded to
Euro Travellers’ Cheque Inter-
national as chief executive during
1980 -and 1981. Mr Me William
will be based in London and will
be responsible for MasterCard’s
worldwide operations outside
North America. He will co-ordi-
nate MasterCard’s relationships
with its international partners.
including/Eurocard. .Access and
ETCH in Europe, FinCorp in the
Middle East and Million Card.
Union Credit and Diamond Card
in Japan, as well as other part-
ners in the Far East and Latin
America.

GROUP, will as of February 1,
1983, join the Kansallis-Osake-
Pankki to become chief general
manager. From the same date,
Mr Pentti Talonen, who has been
a member of the supervisory
board of Pohjola Insurance Com-
pany since 1974. will succeed Mr
Lasstia as m anag in g director of
all the companies within the
Pohjola group. Mr Talonen is
managing director of a clo thing
company.

• Brigadier General Richard W.
Pryor CUSAF Ret), of the
Defense Communications Agency
has succeeded Mr John B. McKin-
ney as president and general
manager of ITT WORLD COM-
MUNICATIONS INO, a unit of
International Telephone -and
Telegraph Corp, New York. Mr
McKinney has been named ITT
WorldCom chairman, succeeding
Hr George F. Knapp, wh o has
assumed responsibility for ITTs
European telecommunications
and electronics interests as
director of market and product
management Mr McKinney had
been - the company’s president
since 1980 and general manager
since 1977.

INTERNATIONAL APPOINTMENTS

responsible for co-ordinating the
firm.’s auto glass activities
throughout Europe. He will be
located In PPG’s European glass
office in Paris. - .

30 1983, after having Cakea-part
m the management of Pierson,
Heldring and -Pierson and later
of Amro Bank for many years.
Mr ML J. Drabbe andMr G. JE.

Mr R. J. NeUssen, Mr M. J. Drabbe and Mr G. E. Loudon

• Mr Jaakko Lassila, managing
director of the POHJOLA

• Mr Robert J. Bishop has been
named manager of European
automotive glass operations for
PPG INDUSTRIES. Mr Stanley C.
■DeGreve succeeds him as mana-
ger of PPG’s Tipton, Pa., auto-
motive glass fabricating plant
In the new post Mr Bishop is

9 Mr O. Vogelenzaug, rhulrman
of tiie board of mgn«grir»g direo*
tore of AMSTERDAM-ROTTER-
DAM BANK- will retire on
June 1 1983, the date at which
he will resign as chairman of the
Netherlands Ban king Associa-
tion and the Council of the Joist
Dutch Banks. As chairman of
the board of mana gin g- direct o rs
he will be succeeded by Mr R. J.
Nellssen, currently Vice-Chair-
man of the board. Managing
director Mr A. Vermaak will
also retire, in his case on March

Loudon, both general managers
of tiie company, have been
appointed managing directors
from March 30 and June 1 1983
respectively.' >•

• U.S. INDUSTRIES, INC; Stam-
ford, has elected Mr B. J. Garet
senior vice-president In charge of
the corporation’s .bonding
materials group. •.

• Mr Jurgen Undeman, vice-
president of BANKERS-. TRUST
COMPANY, London, his been
appointed bead of the resources
management . department of

Bankers Trust 'GmbH. Frankfurt,
wholly owned West German sub-
sidiary, where he wiH assume
responsibility for the foreign
exchange and treasury function.
Mr Philip Davies has joined
Bankers Trust from -Citibank,
London, as vice-presidehtto head
..the -.. ..London ... office foreign
ex chang e trading desk.

• Mr F- A. G. Rraak will leave
FOKKEK, . Amsterdam/ from
July 1 when he becomes, direc-.
tor of-.COSSO,. Society of Com:.

; p uter Service and . Software .
Bureaux. He has been eooployed
at Foldier, as; director corporate
strategy and planning' since 1980.
Before Mr Rraak joined Fokker,
he was working’' with IBM
Holland as- general director. - ,

• Mr Piet A. Vandermeerschv
vice-president^ has been- n a me d.,
manager of the Am sterdam
branch of CONTINENTAL
ILLINOIS NATIONAL RANK
AND TRUST: COMPANY. He
had previously been manager,
international ' banking " services,

for - Continental Bank, Antwerp-

been a m ember of Ihe -board
saucer. January . ’VV^:

•’ .David ; A. ;Lattamdo has
■been v -elected - to. " tee / newly-
created, post of vice . president-
systems, planning and analysis
fdr' STAR-KIST ; FOODS, INC,
Los -.Angeles, van 1 H. J. Hein*
Company^ subsidiary,.:; v.:'

. • DI GIORGIO COBP> San Fran*
cisco,' has 'elected Mr Teter F.
-Scott president andchlet execu-
' tive officer succeeding Mr Robert
DI - Giorgio who - continues as
chairman. Mr. Scotty had i been
vice president and chief flmmcial
officec. : • - / -.-! - K. , *;*'

l '

0\r er ‘ :

ft*- ,, £.(*

%r-

Zm iff
i fT*.

fy w

\ .-j i i

1 3?,*PS

vt:

• NATIONAL CTPSiai 00.
Dailaa, has edected JHr John P.
Hayes to tefe newly created posi-
tion- of vtefrriialbnan and Mr
Edwax^ J. Killian as president
and chief operating officer. Mr
Hayes pirevaousiy served as presi-
dent and 'Chief operating officer
and has heed. a member df' tee
-board ‘ since -1970. ■' Mr -Killian
was group vicepresSdent and has

• R & H HALL Dublin bis ep-
pointed Hr Neville -Whitehead

- as . Vixre chairman. He 1 haei been' a
-director since . 1966 -and is pre-
sently managing: directo r ■ of
Alexander^ , Partners, London, - a
■wholly-owned sohsldiaiy. '-. Tie
will also take' responsbi jfly-for
the. trading operations -and com*

' merrial develosvpent of the Cork
and Watrford area, in Ireland,
from; Jtflyi JL • . •. ' .

• WOOD,! MACKENZIE * CO
(WM) has broadened its coverage
of the international c^l industry

■ withe tee - apfKrintment of two
tenior - analysts at its "New York
. office. "Mr Noel -Casey and 'his
assistant • Mrs Ertfnda Canlas,
,lMte , 'qidcialteri'tete TJB.
energy scene, loth WM’s "New
' Yotk -Office from' Prudential In-
surance Company, of America.

CriK

- -

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eir-o’ ”
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Thfcq

fTtwrffarfrf ffrmil cc3y

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SLNAMAM

Superintendencia Nacional
da Marinlia Mercante

Brencb. Rnncs 736XKX1/DCO
IfeixhEgxirtQBdit

.’MancaB&tir

Bangoe do lTInion Emop^enno
BanqaeNailonnle do Fazis *- C^ddttC^mzxisid^Ldeficozico
Credit I^ozmais * SoGLdt6Gdu6zal0

BaaqaadsTOnionEnropdenne

US $ 165,000,000
MecJiximTTemLoari

Tiinri

BcmqaoKaikmodo do Baris ♦ C^diiCbminssdaldoficancd
^rpqrrft r?a T Tfhfnrt Enmp ^QtmQ * Banqiie Ini&matioiidle pour EftftiquR O cct de n tate

Credit Lyonncds * SQti6teG6n&Kfid

f KrnrningHrily

GtOTpsriaO^Inriiis^

ErcwiSsciUvr

Bflm 5 »Nritonated«Batis • Qfid&CSoxnaeiieEsIdsSnxiw
R a B qgadBrnBS aB BUBp rirm ♦ Ben gy MB t» f rti flnwift frinr Wini ^ Otitf<f«HWe ^KTX ftj
• CScfiditLyonnais • Sed«6Gtatea»

fhMftfa^^l n^ffwMw nairjn't

’Rfmrp TQ OTinTpordt^pcmrEccte (Eurabani) * Banqoo de IgM6gfionon6o - Ranc n S A . ♦ BamjonloutolSijfis

CrtdttN&wl-caiflg ♦ Q^dfillidus&telderOaast-CXO, ♦ Intomationcl Eaargy'RffnlrT jmttBrt
TTWtftnirddRftmrnAgntiadaBopfpms * BanqoePeirofigoa * Ctfdadiiltad ♦ sodtf62nrinststea]Bd»2cffiqpft

J Sga±

OeidSCommezcLcadeltemc^

April 1982

W»l.

spray 1 -

•iiij

?& : T:

FT INTERNATIONAL BOND SERVICE

■fc iGeff

U.S. DOLLAR «i»i 9 »«iv- -

STRAIGHTS lasttod Bid Offar Owf WNk YWd-

Aetna Life 15 86/97 ... 150 98 V 9 P. -MH. -OS 15.35

Amax Int. Fin. 16 V 92 75 96 96 V + 0 *, -IV 17.01

Arnux O/S fin. 14 V 89 75 33 V 33 V +OV - 0 V 1 BS 4

APS Fin. Co. 16 V 88 ... 75 . 9 BV 9 BV - 0 V - 0 V 16 J 6

ATT 14 V 89 400 90 V 100 V +<JV + 0 V 14.17

Baker Int. Rn. 0.0 82 225 tZS 2 Pj + 0 V + 0 V 1530
BHP Finance 14 V 89 ... 150 93 V 94 V - 0 V -IV 18-26

Bk. Amor. ITT SA 12 87 200 88 88 V 0 -IV 15.61

Bk. Montreal 14 V 87 ... 100 94 V 96 V 0 -IV 18.06

Bque. Indo Suez 16 89 100 93 V 33 V — 0 V — 2 V 16.63

Britiah Col. Hyd. 14 V 89 200 95 V 96 V + 0 V - 1 V 1 SJ 4 .

Burroughs Int. 15 V 88 50 9 BV 9 BV - 0 V - 1 V 16.11

Canadair 15 >i 87 ISO 9 SV 99 V + 0 V - 0 V 15.78

Canadian Pac. 14 V 92 75 33 V 94 + 0 V -IV 15.90

Carolina Power 16 V 89 60 97 V 9 BV - 0 V - 2 V 16 A 1

CIBC 16 87 100 99 V 99 V +OV O 16.08

Citicorp O/S 15 84/92 100 88 V 98 V +OV -OV 15.90

Citicorp O/S 15 V 85/97 125 98 V 98 V + 0 V -OV 16.05

CNA 15 V 97 75 94 V 86 V -OV -IV 16.74

Con. Illinois 15 V 89 ... 100 98 V 99 V +OV — OV 16.97

Duke Pwr. 0/3 15 V 88 60 95 V - 95 V -OV -OV 16.64

Dupont O/S Cep. 0.0 90 300 33 V 33 V + 0 V + 0 V 15.38

ECSC 14 V 87 50 94 V 96 V -OV -OV 16.23

EIB 15 V 89 150 97 V 97 V + 0 V -IV 16.11

Ekaportfinena 14 V 89 ... SO 92 V 93 V -OV -ZV 16.27

Gan. Elec. Credit 0.0 92 400 25 V 28 V 0 + 0 V 14 S3

Gen. Elec. Credit 0.0 S 3 400 22 V 22 V 0 - 0 », 143 B

Getty Oil Int. 14 98 ... 125 94 V 94 V -OV -IV 15-35

GMAC O/S Fin. 16 88 150 S 7 », 98 V -OV “OV 16.48

GMAC O/S 15 V 85/97 100 97 V 87 V + 0 V “OV 16.41

GMAC O/S Fin. 15 89 125 94 V 95 -f-OV -IV IB JO

GMAC O/S Fin. 15 87 100 9 &V 98 V + 0 V-- 0 V 16 A 1

Gulf Canada Ltd 14 V 92 100 93 V 93 V -OV -IV 16.07

Gulf Oil 14 V 94 175 96 V 98 V 0 -IV 14.98

Gulf Oil Fin. 0.0 92 ... 300 25 V 26 V + 0 V + 0 V 14.98

Gulf Stares O/S 16 90 00 95 95 V -OV -IV 17.10

Int-Am. Ov. Bk. 15 V 87 55 96 V 95 V “OV 0 16.31

Japan Oev. Bk. 1 &V 87 SO 10 OV 100 V 0 . 0 16.22
Naw Bruns Wrick 16 V 89 75 99 V 06 V + 0 V -OV 16.60

Ontario Hydro 14 >, 89 .150 S 5 V 86 V 0 -ZV 16.74

Pac. Gas 8 El 15 », B 9 G SBV S 8 V -OV -IV 15,83

J. C. Penney G 1 . 0.0 94 350 . 1 &V 19 V 0 +OV 15.33

Phillips Patrol 14 89 ... 200 92 V 93 V 0 -OV 15.71

R.J. Rynlda. O/S 0.0 92 400 24 V 25 V -OV -OV 16.61

Saskatchewan 16 89 ... 125 90 V- 99 V -f-OV -OV 19.04

Shell Canada 1 «V 92 ... 125 94 94 V 4 - 0 >, -2 15.53

Spain 15 V 87 100 98 V 99 V “OV 0 16.04

Superior 0/5 Fin. 14 89 125 91 V 82 “OV -OV 164)4

Swed. E*o. Cr. 15 V 89 TOO 87 V 98 -OV + 0 V 15.78

Swed. Exp. Cr. 14 V 80 100 93 V S 3 7 . -OV -IV 18.21

Swed. Exp. Cr. 0.0 94 200 18 V 18 V + 0 V + 0 V 15.44

Texan Ex item 15 V 89 .. 60 88 V 99 V -OV + 0 V 15 JW

Union Carbide 14 V 89 160 94 V 95 V + 0 V -OV 15.97

Welle Fnroo 1 . F. 15 87 7 $ 96 V 8 T -OV -T 1556

World Bank 15 i« 86 ... 250 96 V 97 V 0 -IV 15.99

World Bank 14 V 87 ... 500 94 V 94 V +OV —OV 164)8

Average price changes... On day Oen weak — OV

DEUTSCHE MARK N ' Chang* on

STRAIGHTS Issued Bid Offer day week Yield

Asian Dev. Bank 9 V 92 150 98 V 99 -OV 0 8.40

Australia 9 V 91 300 101 V 1 B 2 V 0 -OV 9.00

Australis 9 V 91 200 TOZV 103 + 0 V -OV A 91

Austria 8 V 82 100 94 V' 94 V 0 + 0 V 9 A 6

Barclays O/S In. 8 V 94 100 84 V MV 0 -foV 0 .-"

Canada 6 V 88 ZOO 100 V 100 V 0 -HP* 837

Comp. Tel. Esp 10 V 92 100 100 V 100 V +OV -FOV 10.39
Crsd. Foncler 8 V 92 ... 100 95 V 96 V O + 0 V 9.40

Denmark 10 88 100 100 VW 1 V + 0 V 0 9 , 68 '

Denmark 10 V 92 100 103 V 102 V 0 40 V 9.74

EOF 9 V 92 100 100 lOOV 0 + 0 V 9.80

EEC 9 V 9 < 200 . 101 V iSlV 40 V -OV 9.52

EIB 8 V 92 ..: 1 W 94 V «V + 0 V + 9 V 9^4

hit.-Am. Ds». Bk. 8 92 ISO 87 V SBV 40 V 40 V _9M

Ireland 10 V 88 100 100 V 101 V 40 V -OV 9.88

Nacnl. Flnanchira 11 90 150 96 96 V « 0 V -IV 11.77

Philip Morris SV 90 ... 100 88 V 88 V + 0 V 40 V 8 JS

Ouebae 10 V 92 ISO 102 V 103 V + 0 *, 0 9.62

Rente 10 92 100 96 V 9 §V + 0 V + 0 V lO.ia

RNCF 8 V 92 1 » 94 V 9 Pi + 0 V + 0 V 9.44

Tausmautobahn -OV 94 60 . IWVIlHV + 0 V 40 V 9 .E

World Bank SV 32 200 .941, 94 V +QV 0 9S7

Aeersae price changes... On day + 0 V on week 0 .

SWISS FRANC Cheng a on

STRAIGHTS - • Issued Bid Offer day week Yield .

Air Canada sv 92 WO ' TOOVWIV -OV 41 V 6.11

Aslan Dev. Bank 7 92 ... 100 . 100 V-WQV 40 V -OV 6.96

Aucalae 7 V 92 80 96 V 96 V tOV -OV 8.26

Australia 6 V 34 WO 103 V 1 «V -OV 42 8.10

Css. Nat. 1 ‘Entrgie 7 82 100 100 V 100 V “OV -OV 6.91

CFE- Mexico 8 V 92 .^... so 96 V 97 -OV -1 8 76

Co-Op. Danmark BV 92 25 • 102 V 103 V 40 V -IV 7.91
Crown Zalireh. ■ 6 V 92 WO 98 V 9 SV -OV 41 V 6^9

Euro pars; 7 V 82 100 WOL 100 V -OV “OV 7.23

Ind. Fund Finland 6 V 82 30 98 V 98 V 40 V , 40 V 7.00

Japan Daw Bank 8 94 .. 100 99 ** 9 BV 40 V 42 6.04

Kobe City 6 V 92 100 99 V 99 V 40 V 40 V 6.19

Kommunlene ; 7 V 92 . u . 36 WPV. 100 V — OV 41 V 7,19
Mitsui OSK 8 V 92 ...... WO 89 39 V -OV 41 6.60

NalKMial Pwc, Co. S 92 JO 103 V W 3 V 4 40 V 7-47

New Zealand 6 92 100 99 V 99 V -OV +OV 6.07

0 KB- 7 V 02 - 100 “ W 3 V 104 - 0 V- 40 ** 7,19

Oat. Poatspar 7 V 92 ... 100 1 QZV 1 Q 2 V -OV 40 V 7.11
Philip Morris 6 V 92 ... 100 102 V 102 V -OV 41 V 6.29

Philip Morris «V 84 ... WO 100 V 101 V “OV -OV 8.13

DuabSP 7 V 9 ? WO 104 V 105 -OV 42 8.67

Sakiaui Pfp; &V 52 WW . 80 97 V 9 B — OV -IV S.B 7

Rente 7 V 92 TO 106 105 V -OV 42 V 5.06

Soc. Lux. de Cnt 8 V 92 90 W 7 TO 7 V 41 +OV 8.96

Tirolsr Weeaef 6 V 52 100 96 V 97 V “OV 40 V 6.87

Vonrlbsrp . Krtft 6 V « 50 ■ 102 V « 3 V “OV fflt .W.'

Average prica changes. .. On dsy -OV «n Week 40 V

^ • cfixiyo on "*

Y 01 STRAIGHTS . . Issued BW Offer day weak yield

EIB SV 32 15 S 6 V 97 V’ 0 ‘ -OV 8.67

Int.-Amer, Dev. 8 V 81 « 10 TV WBV 40 V 40 V 8 ^ 8 .

Japan Airiinaa 7 V 87 ... 9 96 95 V O “OV. 9.16

. New Zealand SV 87 . ... IS 99 VKWV+OV 40 V 8 JTT

World 1 Bank SV 92 ... 2 D‘ 98 »i MV- 0 V 0 WS 4
. Average price chances... On day 0 on me e k — OV
. ’ * . e . . - I. . -

C lun g # on *

OTHBt STRAIGHTS Issued Bid Offer day weak Yield
Bell Canada TB 89 . C$... 100 . 196 V 96 V O -OV 1 BJ 5
Can. PacI S. 16 V 89 CS SO 196 V 97 V 0 -OV 17.10

Crd. Fancier 17 V 89 CS 30 198 V 99 ' V -OV 17.41

Hudson Bay 17 89 CS... 40 • 1 S 3 93 V -OV -S*, 18 J 78

OKB 16 V 88 CS 63 ■ 194 V 96 0 -OV T 7.74

0 . Hyd. 16 V 89 (My) CS 50 198 V 39 . 0 -OV 16.79

Quebec Prov. 16 V 89 CS 50 . 198 98 *, 0 -OV 15.88
U. Bk. Nwy. 9 V 90 EUA IS 90 V 91 V + 0 V 41 VTIJS
Amro Bank 10 87 Ff ... 160 98 V 99 *, « 40 V 10 J 9

Bk: Maes & H. 10 87 FT 7 S. 97 V 98 V — 0 ** — OV 10.53

Eurafitna 10 V 89 FI GO B 9 VW 0 V 40 V 40 V 10.51

Ireland 70 V 87 FI 75 97 V 97 V -OV -IV 11.16

Phil, lamps 10 V 87 FI... 100 99 99 V -OV -OV 10*3

World Bank 1087 FT ... 150 97 V 97 V O “OV W.K*

OKB U 88 Ff r 400 92 V S 3 1 , -OV -OV 10^2

Solway at C. 14 V 86 FFr 200 92 V 93 *, 0 -OV 17^2

Acona 14 85 20 9 SV 96 V 0 -OV 15.59

Beneficial 14 V 90 £ (D) 20 87 V S 8 V 40 V - 1 V 1 B 93 ,

BNP 13 V 91 E IS 92 V 93 V 40 V -OV 1490

CECA 13 V 88 £- 20 94 95 0 . -IV MJS

Pin. Ex/ Crad. 13 V 88 £ IS 95 V 96 V + 0 V ' 0 15 J»

Gen. Dae. Co. 12 V 89 t 50 » 93 -MHr- 0 V 14 J 9

HUsm Walker T 4 V 88 C 25 97 V . 98 V 0 . 0 14,92

Prrwatbankeo 14 V 88 £ 12 94 V 95 V 40 V 0 . 15.76

Quebec 15 V 87 £. 36 W 1 V 10 ZV 0 -CP 4 T 4 J 4

Reed <Nd] KV 16 V 69 C 25 103 V 104 V 40 V 0 15 . 7 V

Royal Tniatco 14 88 £... 12 97 V 98 V 40 *, 40 V 14 JS7

SDR France 15 V 92 C... 30 9 BV 99 % 0 - 0 V 1 S .91

Swed. Ex, Cr. 13 V 86 £ 20 96 % 97 V+ 0 V - 0 V 14 -»

Eurofima TOV 87 LuxFr 500 9 <V 9 B% — 0 % -1% 11J»

EIB 9 V 88 LuxFr 600 91 % 92 % + 0 % 40 % 11.72

FLOATING RATE

NOTES Spread Bid Offer CuB* C-cpn C.yld

Allied Irish SV 92 0 ** 96 96 % 15/101539 15.97

Bk. Of Tokyo 5 V 9 t W 0 *. 9 SV 99 V 8 /T 2 JS% «JI 2
Bk. Nova Scooe SV 93 9, SBV MV 29 /W 16 % . 15^0

Bf CE SV 88 OV 96 % 96 % 28/10 IS 15.17

BFCE SV 87 .; — < OV 99 V 99 % 27/7 16 V 16.33

BNP 5 V 89 WW OV 98 % 98 % B /11 15.19 15 J«

Caiase Nad TMe. SV 90 0 *. 08% 80 % 2 l/*J iSV 16«9

CCCE 5 V 2002 - OV 98 >< 96 V 11/12 15 % 15.01

CEPME 5 % 92 OV 98 % . 98 % 1^12 16.44 iS £3

Chemical NY 5 V 94 ... 0 % 09 09 % 23 /» 16.69 16.81

Com Illinois 15 V S 4 0 % 98 % 89 V 24/9 16 % -1654

Credit Agricola 5 V 97 ... «V 98 % 99 % 24/9 1544 1 SJ 7
Credit du -Nord 6 % » OV MV 99 V 23 / 12 16.81 18 . 9 ft
Credit Lyonnais 8 V 97 ... 0 % 98 % 99 % 1/10 16 18.14

Credit . Nil 6 % 94 «Q% 90 V 98 % 9/9 14.68 1431

Denmer*. Kn^dm. cl 82 799 % 9 9 % 25/9 75.44 KLS8

Ireland SV 89/94 O*. 198 V 9 BV»/n 14 V 1 *JB

Kaneallis Osaka SV 92 0% 9 R>i 98 6/ 17 15 .XI IS .51

Lloyds Eurofih S% 93 8 <r-« 96 % 98 % 23/10 17 % 17 JO.

Long Term Crad. 5 V 92 0 % 98 Sgi 2 »/Tt 14 %. 14 »

J. P. Morgen 5 % 97 ... 50 % 98 V SBV 12/8 14 % 14.79

Nat.'. West. Fia. 6 % 91 ... MV 99 % JB% 1 S /7 -lfi -19 15 J 24

New Zealand SV 87 OV 99 99 % 7/10 15.56 . 15.60

Nippon Credit 5 % 90 ... OV 99 99 % 10/8 gff 16.18

Offshore M 1 *inu SV 91 OV 88 % 99 V 2/12 14.19 14 JSS

PKbanken 5 01 OV 98 % 09 % 17 / 12 - 15 JO W J 5 '

Scotland Int. 6 V 0 % 98 % 99 23/9 15 % 1 &S 7

Sac. Pacific 5 % 91 ' 0 % 98 % 99 % 24/11 » 15.17

Sdmete GaiHrale 8 % 85 OV 96 % 99 % 1/9 4531 15 >*
Standard Chart. 9% -01 - 0 % 9 ^ 98 % 18/11 14 % 1 SJ»:

Sweden 5 V 89 0 % » M* r 28/8 1531 15^3

Toronto Domln'n 5 % 92 OV 9 BV 99 % 11/8 10 % 16 J 4

Average price chwtgea... On tMy 0 on Met 0

CONVERTIBLE. - Cmr.-Onr. ' : Cbg.' ■
BONOS , date price Bid Offer day ./Veto

Ajinomoto 5 % 86 7/81 838 81 % 82 % + 0 % BAB

Bow Valley- 1 nv . .8 .... 4 / 8123.12 . 97 . 99 — 0 % 59 j 31 -
Bridgestone Tim 6 % 96 3/82 470 89 V 96 % + 0 % 0.13

Canon 6 V 95 — . 1/81 MS 84 % 86 % ,42 - 1 Z 27

Chugai Pham TV SB ... 7/0 7016 » 96 % + 0 % -M 4

Fujiuu Fanuc 4 V 96 W/ftt 6841 79 V 81 % -OV 13.17

Furukhwa EIM.. 6 V 96 .. 7 /Bi 300 85. 86 % MJV - 4 J 28

Hinton O/S. Fin, 0 % 96 B/*> . 1 39 ?S 7 88 +5 - 4 L 90

Hitachi Otbb 5 % 96 ...... 2 / 82 , 615 $ 3 % BSY'-CV 5141

Hitachi Cred. Cpn. 5 86 7/21 W 12 75 77 0 - 0.52

Honda Motor 5 V S 7 „.„. 3 /S «41 61 %. 82 % -WV 2 Jt 4

Incheape 8 95 2/81 XSS t 56 % 58 % 0 42 . IB

Kawasaki 5 V 98 ...*«• 9f8t - MS 61 %, « 3 % - 0 %. 1 MB

Marui 698 7 / 81846.4 W% 30 % - 0 *a 6.00

MiuoJrt.Catnera S 8 S... 10 /B 1 828 ^ 58 68 V 0 27.08

Min'orco SV 97 .L.rrai.ii GHZ 9 .TO T 75 1 , 77*1 IT 00.83

Murats 5 % W ...... ' 7/81 »BB 65 %. < 1 % -OV 14 JJ

NKK 6 % 98 . ...... ... 7/81 ', 1 B C 9 V - 7 fV + 0 % - 21 .S

Nippon CJimir-C. 5 S 1 -W /81 919 « 63 0 22.38

Nippon Electric 6 V S 7 W 2/82 «8 88 V 89 % + 0 V 7St

Orient' Finance 5 V 97 — 3/82 1206 80 % 86 % + 8 % 5 . 31 .

Sanyo E 1 «trie 5 ' 86 . w. 1 fl/BT- SB 63 % .tl.TB

Sumitomo Elec. 8 % «... 3 / 825 / 7.3 84 % . 86 - 0 % ' 11.13

Sumitomo Mlt. 5 V 98 — W/ 812 B 6.1 02 % 04 % U VXt

Swiss Bk. Cmi. BV 8 Qv- 8 /M. :-W 1 7 lV 73 % 9 29 - 60 .
KonfshlrofcttB » DM ... 9/82 88 S 1 W%TOT% -B%
MitaoblaM-H, B BS DM MB 283 89 SO +OV ZZM

•O Tha financial Those Ltd. 1082. Roproduedon In whole .
.or Jit part lp aijy.Tdrin n« pormmed wnfuwt. wttttw
content, Oats aupri>*d by OATASTREAM

EUROBOND TimNQVBK

• ( onriilital ctIm in tm)j rj

atN £nm:
■* wsri
t

wfscPi

Uni tail
flTW 2-
abtar -

V ,' : Euro-

Ceitel dfttr

bonds •

ww* i.i'Mraa 2.7
Previtras weefc.; 40443 11,642.6

XKHerrJbimiiA ' ’ . ' ' .

Last week ... 767 J. 593.4
Previous week 1,682,3 84L4

l* S'« P!

Sbcr DC
13U 5\ '
IE* hWl

-W Do 4>
esi Pmst'
•J>u: U
n tc«:I>3
Wam lit.
OEWH*

Poll.

-* No information avail aBle^-
preyious ^ay’s price.

t Only une market maker
-supplied a price.

STRAIGHT BONDS: The Yield
is the -yield' to redemption.- of
the mid-price; the amount issued
- is in millions of currency units
except for ... Yen . bonds . where
it - is In billions. Change on
week = Change over price a week
earlier.- .

FLOATING HATE H&VES:
Denominated ia dollars unless
otherwise indicated. -Coupon
.shown is minimum. . Cdte=Date
: next coupon becomes effective.
Sp read = Margin above, six-month
offered rate <# three - monte ;
5 above mean rale) for ; UjS.
dollars. '- Cepn =: The current
coupon. C.yld. = The current
yield. - - - - .

CONVERTIBLE BONDS: De-
nominated •* in dollars unless
otherwise Indicated. Chg. day =
Change on day. Cnv. date = First
-date for cbnvexsio'Q into shares.
Cnv. price — Nominal amount of
hood per ‘ share ' expressed : in
currency of- share at conversion-
rate fixed at issue:' Prem=Per-
^entage , premium of -the current
effective .price.-, of acquiring
: shares via the bond over .the
moss recent price of the shares.

rena

Wcei

L'jht

Srpi,

iilUi

Ac?
of ih
Oust
Sub
Oi
isbi
aitu
Unii!
<fna
rfei
ca >
P«i
tfni
I

One

Rti

effe

«rt

D«

The list shows the
iniernatioaai. bonds f or . wfitoli .

■ an -adequate -secondary.; market
, exists. The prices over the. past
week were aupplied^ by: -Kredlet-
hank NV; Credit Comroerdai'de
France; Credit ~ Lyonnais; vCom-
znerzbafik - AG; Deutsrtie Book
AG; Westdcutsche 1 Landeshank
:Giro7^ntrale; Banqiie Generate
du Luxembourg SA;. Bwqne
Internationale' ‘ -. Luxembourg;
Kre diet b,a irk . Luxembourg;
Algemene Bank Nederland,-^:
Fiereoru,, Heldring and Piet^on; .
Credit Suisse/Swiss GredBt Back;
Union Bank ■ of. Swtiz»laati;
_Akroyd .'and. Smjthers; Hank
of Tokyo Internatidntfr Bankets
Trust International; Chase Man-
hattan; ' -Citicorp International
Bank; Credit -' (kRnmerci^ -de
France . (Securitiea) : London;
Daroa Europe ■ NV; - J9dltec_
Securities (UK); EBCr. ’First
Ghicaga:'. Goldmte'.Sachs .Inter-
national Corporation;- Hamtate .
Bank; IBJ Intefnattonair ladder.
Peabody International;: Merrill
Lynch; Morgan ' Stonier Inter-
natjonaJ; ; NikSa S«aritteri(38»-
-(Europe); . T driOtt ' Rbyal
.Bank; Samuel -Montagu rand ^otf -
: Scandinavian Bank: . E oclete -
Gmeraie . Str

I^Warburg a^ Co.^^4

*>•-

Mi H'

‘Wins

. - Koandal Times Monday Jane 28 1982

WEEK’S FINANCIAL DIARY M

“■rtMotora core Ln 3U u pc • “tfro^nc °«X) *2000*™ 60cu ' 10#eW sfiSSSSS fflM lUS?- **««* ■»•**

§S? 6 T NV F,MB HaW ^ 19 » HUmm .?•?“ “ F, « R «a 1988 cKw^fnd Mo^hSter Erenloi Now

■' **&&«» *.0» * . "

AcMptlUKO C*rt) 2'ipc CecM8Ufe»!MS
Sugi-dgOcSS 1965 2>ipe

The foil*™ - a5fjjrMfgiS , * h » 4, !« .

mahjy f» ^SJHt -^SLiSS? “S 11 * « §S^.S^ , gf^' n3, “ “ *“■--' " «3S3T fSmjnJ^^^TsVsDc

indications are nn*li!^ e OT ransiQenng dividends and official Oh-mwwi imni rSw 2.7125 pc. Ln 3pc g®g|*j; £f jpeM 2.4spc

mainly on last ySfiimtSbff WzvM10ns shcwn tetow ^ based ^Sk"*™** «"• ^ ^ sKI? inSixJu's'tpcn *2-K5re

. Aawv loutDB Ob 2ac . .. . _

MNredon -Ln 44 hk

— Sc o t t o il - tw» More— Inv — EM»--3Hioe—

Goodrich at. F.y 39 a* ' hcotuui Natl Tst do 2i : k

Gram pun Hldgs. 7oePt 2-45ee. Db 3>4K SS5J*B i' td u. , J52f , ff5.i.P 0 - i^K

Harrison (TX.J 2.18P ' Kl

HwdwMcri -Water —XJoc- tJtartMrly SoO fcP.ra
_ M« 1.73 k. 4. 02fi*£ (Former* 5*mo

- Rl-HPT S3- 85^2 ^rn3oc“- • - - -■ —

• -Hj„l In -4-35t>CPr2.27SpC - • •

gene Brothers idkPT Sue
Bermuda Electric Light Db 3*HK
Bermuda Tesansooe b& jJ»a<

««iuiy on last year's timetable. — •

*t|way CS "‘ jew (Arthur! Shoe pi l.szspc. Ln dime

^J|Cd Plant Royalstation n , ..i v . Bent Brothan TOpc pf 5 pc
_Shlre. 11.3* 5 “‘«« Haul. York- Bermud* Electric light Db Vat

fSS Inn, EictMu n nh i -, , Bermuda Telephone Db jw

_Aireon. BirainSum ySnb.' Btnnln Bhbm Bonobeu ObJHoc **Pt

& w Sh r?ss. «*"*« •«— .

■ Finals: "vntriNCiS— Bowtherw Lq Z»-k

■.■IBSSfffiSF ■ **«"*'“

ttSSr'' Aacn ' KZSJtlfctJhi't y 't J * x

: Marshalh'^wi/jfS^ 1 T< *- £- iflff-.y* pE* <WI»I 2 1« pc

Interimu ■ • Flow 5-5l>e

Barr (A. G.» KiPS fSulW fDem Rly) 2 DC. (Dxn r|m

- NMyi Eritiah Home stvu Dfas za» sij Vac

Vena Stone “ . Stfimm Ww 3 C 3 i.pt

jtawater L n. Shne “

Brrwthceoa Lq

'wwowre) Ln 4boc

S3S2?„ c ?i 5b?" 1 * J - «•>

Baywwr*^ ^ -

Bristol Wtrwtra; Dta ill » toorpl 21

Srii?-?? ,l £. A f^ ss - 5 «P/ (tMfreeiaSsiK

wat - -Uqlytrsal Stem Lu -Ma 4J&

2Umpc ....

Graatermant Stores Ptg* Pf SAca ■ ■
Greene Kino and Sobs DO 3)*pc .

Group Investors Db'2hpc
. Guinness Put Go. 4JpcPt '2.1 pc -
Guthrie Gore. Ln «i|pc. -r - .-

RJUT. Group Ln 4 PC • J ' \

Haden PLC S4pcPf 1.925 k
H all Engineering (Hides . 1 fityxPT Z27SPC
H«l|. and Ham River Dtn 2 "k. 3Unc
KiH tnalpoerfag CHIdgsJ U 3'uK «
Hall Thcrtnoank Ln 3oc
Kalina Ln si ;P c

. K*|s&5sd James Go. 5'jPePf 1.925 k. Db

Hum Investment Trust Db i'ree
HimPSPn Industries Ln 4 pc

Hidewooe foods 7^pcPtgPf 43760

_ _ _ Henderson ip.c.i Go. 7JSp

Sears 'Eng 1 Kings) _ 6 kpi "2.7 pc' Heoworm Ceramie 3p

Shaw (Frauds! S'.pcPt 2. 625 pc Ke*ur Ip

Ship Mtg. F|ii.' Db 4pe * . Mlflhcrprt Invest T« J.7P

Shlosooc (James) Db 2 k Hoskins and Horton 3o

Shrewsbury Vlem. Brew*. Dh 2w Hulctfj Retmerlep Db lSuac " •

signooe Ln sijk Hull .Core sisKind 14 uk

Simon Enn'O Do avp 1- - - HuntlMh Grp fl-9o ■ -' ' >

Sirdar 7pc£f 2^625pc .... HunOev -Palmer Poods JL44P

Simibh t*5«t« Ln 4 5 k It .Inds 57cts - _ 1

Smprtt (Jefferson) Gp. bccPf 2.1p«. - Ln ’ ! odH !. ?**«; 1 eBC_

514 K lonll Tnds Ln *K

Splrax Sarco Ena'g Db (1931-66) 3%K. J2JJM ^»lllore DB 2UK

fSINESSMAN'S DIARY

UK TRADET TAIRS AMJ EXHIBITIONS

Date .

Current Birop en Fari ng Tackle Trade Bdhibltio&—

* - ‘ . _ — CTTTEX (021-780 4141) (until June 29) NEC, Birmingham

jane 25-Joly 1 ... IntamaaonSl Floorcoveripg Exhibitfoo— JCNPEX

(02*32 5537) Olympda ■

Jtaur35Ja3y 1 A. Teanpaatow Meastfltnaent rad Control. Exhibition '

' ^and Conference— TEMPGON (0822 4671) Wembley Conference Centre

July 2-4 Sou til of Engla nd Exhibition of Homes. Food,

•'•'•• _ Trades and Lwsure (0273 687381) Britton Centre

July 5-8 ^.A.....*Koyal Show (0208 555100) Kenilworth

Vetrae.

Sta^m&WJre ^otl. lOoePr 6.3014 k i
Standard Intfl. Gp. IHjOCPI S .6 25 pr
Star Aluminium Db Z'.pc

l rad Telephone Teles 67 cts
Irish Free Stax# 4’dS Bds ZGpc ■
Joonsoo Group Cleaners OpoPT 5.16SC
kca i rail wpcPI -j:5k

Hanson Tnm 7' a ncPi 2,6i5pc
Hardanger Properties dJSM) 2-Bo
Hurls Furebhlng Db 3<sK
Harris (Lj (Haroliai spePf <i.7Sk
H artlepool Water Db 4 pc. Db 2 -Vpc

Traaion 8peP( 2 Joe. Bpe HawtHi ,4.55 k 2.275 -
JB8X! 5 -Soc Hume Inv Tst Debs 2 i». 2 m M. 3(,

British Guiana (Om Rly) 2 DC. (Dm Rly) MiBttng Oman 6k Pt. 8.1 K

Steelier Db Mpc. Ln 3i»c
S tori (no Gnsraetae Ln 3>, K
Stevenson tHuob) Db 3 )<k
S tothert Pitt SkW t 75 k
S umner Prods. 5tpcW 1-925 k
S un Aiilence London Ln iijpc

2^t5K

K Minings ehs 5«iKPf 1.925PC
Kershaw (A.J Son OpcPt 2 . Hoc
Knitk Save Discount 2p .

Lalng (John) A 1.8750 •
Lake VMM Inv Tst 24*0.

July 8-11 .....
July 13.15

Suodorland Sth. Shield wtr. Db 1>4 3't ' Lanwint KUn fl.Bp

DBS \<Uac .

HOW Sh«t Dta 21 * 31a Vex H matey and Palm

KHS HWbatv SpUmere Db* 3V 3 Vk . 1 ^*Spc, SA« Pf

2.012^°° nt ^ W .c5^7 5pC - ' S *«" *M-A*tt,3*4K

HWhatv Sptimere Db* 3 . __ c _

^ssspsgSriL 1 'rs™ ^yments- 3«gii4V«F® a,t - “**

- D5^Ln^l«2* t * 1 * ,OWa 3I «« £S“° n 00

COMPANY ifppTvSW" S™" Jacason 10.75m

McETINGS— Brown Bros- Ln 4imc

in to Shoe Coro. 40. Duke Straec. w. Brown (John! Db SuU

Breckheuse S.ISpcPf l-575pc
Brooke Bond Db 2'i 4>m. Ln 2* M 51*
Brown JaCkSOfi 10.75KPT -SJ^jpc ■
Brown ESrQi. Ln 4l|pc

'investment Tmu Db i'ipe ' ^k^ 1« w^i dL^ 7pePf July &8 Int^afed Clergy Exh2>ittoi"(i^72' 572' '634> Bristol Exhibition Centre

Hartiainer Properties oiSM)2-8p Stevenson (Huob) Db 3 i«k Kershaw (A.] som.ftxPf 2.BK • . (01-328 S581) ; Alexandra Pal SC©

SZSWftlLffiiSS, ,. 7 S« . fSSSf4Si|EL'«”.W iSS.'SZ, TEH.*- July IS-IS EnrfcoimenM EnKiBMrtng Todw Jtatemational

KKiffr ss i“r„ D 5 b ssLasSratistiiffB. ,;:-aajTur.Ta i! ^*' ““ S?* 1 ” 1 * J “ i syap^um-sEEco torsa

XB« p, July 14-31 xmamugti Dutai. B.hibiti.m-SXPODENT

Mri. tjh»3^4K -rJ'KSLv .« 4aK.rtrt».i5G iwff July in# The Royrt Tournament (01-371 8141) ... Earls Court

ghjciKb ^Reflj^tS 6K.K stio • SSW L *woMri?^. 3 '«e • ' •‘SSfc'&BS a * rfM,4 » 27 W ^22 ....... Harrogate Gift Fair (0282 867153) IIZZIIZ Exhibition Centre, Harrogate

r^SSi.i 3l coid 6J s5nla2 °*H$ 6 Tt^HaSSeSooSa 5hKMo& z’oe. st, «: Leeis -Gth^plc ttrSw Laras dw Dve«> July 2830 ......... WWd CongTeiB and Exhibition for Ultrasound in

JT . • laUS^Shumw >W. . . . '. m«bpm »d MjUg.tOMW.esgs) ibtsste.HdLBilKm

’ Tst Debs 2V 2*CAX Vl 31, ' 3 ’j S’, Sr S', PC

Hbson 6 k PI. aVlps Snniipnr Service Gp. 6«,KPt 3.155 k

and PimJ foods ^ Pf . Sutton DM. VW. mv, M. Skse

5 -4k Pt 2.7 k. Deb Jtpc

BWfl. Proos Db 3 Umk

Gv* 19B3-BB (Refl) SLape 6itK Silo

Swire u»h M P* 3.15 k. 6.3kP 1 INewi

1.97k

Tl Group Ln ,31<oc

Lauohmn Sons TWH 2425 k • „ _ . _ ^

l Hrfafei3&risS»it T J6 Jniy lM1

PI 1.4PC. 3.65k timW sispo Rkipi

aJ:i4 liSI pc ' «"iri5t) Rtdpr 1W6

Alexandra Palace

..' Wembley Conference Centre

EftSS-iSBBJWr-

Brunner la*. 5ocPf 1.73 k
B urklov's Brewery Db 2Lpc
Burtnph Oil Ln 3 Mk '

FIlBbT Rrtuwiim — ’v.aw mk jouwt etc*, doc qu ape. ape uia A

ffiSty LaS'^r P t ”*"■ 9< Lml * ? u F !n * Do 3b m Ape . . Johnson anchr Firth Brown &K4.17

HamwSLjr^- Jf- . Jj» « „ CafcfDread Robey Ln 4Npe Jones and Shipman 4.9pc PI 2.45 k

Old Broacl "ilGFbosjor HMia. TOO. Cambi idpe Wtr/Ob 4-'* 31 hk > Jonas (Cdwartb Ln 7pc

hXJTi | , l " ir t ”“r^ C ' n t2 ~?° • . Gape bid*. Db 131* S^pc Kayser Bondor Deb 3UCO

2. Q nratr^^TrShl 1 1 ° Cixlntfes «T- BpePf 2.1K. - Ln KtarMY aod T rocker M*rvrtn d th SZk

JtetoG^ra gurney tOJK) dLpt Kwnlnss Estates Dbs 2U» 3*» 4 k

J Hanley Jrit^uof, Hotel, Carlton Real Estates Db 5 k - Utegwort Bon son Lonsdale 4iw>c

M07WP .

Insershol-Rand 4 k
I ntpmdtiBMl standard 2 J»k
I sllnp ag core. i4pc Red 7K
Jnrael Elec Deb 3 k
jREfcpoa CJ and HB) Vise
japan 1 Bpe- Stio Ln 33-68 Sne
iente CssasU 3.85 pc 1,58219k
-J ereer Eiet. 6 k Gtd SK. ape Gtd -4
Johnson anchr Firth Brown AK4.17
Jones and Shipman 4J*pe W 2^45 k
'J ons (Edward) Ln 70c
KavMT Bondor Deb 3 uco

K wrings Estates Dbs 2U» 3*» 4 k
mteo wo rt Sanson Lonsdale 4irec
. lASKe^.Bac n 1.75P. Ln 3oc

SIWSli rn S»a™“' “ “■ ^ »3BfcR£'»w " ■ . -35E

LbnoBi d'SSS* HotfC Carter Penguin 6KPI 2.1 k Lahti Ln doc ™* . . TreiMla

■ v^lTLT** .Street. EC iij» Casfcat fSJ .io.2Spcpt s.Ah w . * - ■ . i3Jts*

Cabneae lOOcfes

Teupc Hictgs. Ln 6M
Tnnple.lnv. Ln 3K

-Tendrina Hundred Wtrwlcs. TO^Db 2nd
Tenncco (ji 5k

Thomson are*- 21.7ncP1 10.85 k. Ln

‘ * Thorn EMI 7pcPJ 3 -Sk. Ln 3. 3L>K
4 pc ■ Tltregmorto b Tst. 7 UpcPJ sh. tii
(igse-BIt. 3Tg* ^

TlUvv Lamp 4GU>cPf 2.1 k
T ime Prods. Db 3'rpc
Times Furnla/iJfig Db 2D. 3 k :

e- .-Tpotol Orel Ob 2A> XL. J:*k
T own City Props Ln 7 k
p( Town Centre Sees. Ln 4>dx

LiiilSmn SKPf uape'- . '■ 4 _ J5£Sf Met Exbn Hall. Britton

*“ <now ^ '^ a& 8-12 — • Bttentttaonai Gifts Fair (01-855 9201) Olympia

Lincoln 3K Red 1919 .Urne.

OVERSEAS TRADE FAIRS AND EXHIBITIONS

tiS H* • - Jane 2&35 Videotex EriribWon (09274 28211) New York ‘ ■

L ^?"'nSS? ,n iX. F v r Ef u W ®M_L««mhokj June 25July 1 Temperature * -and Transducer Conference and

3 *- Exhibition — SENSORS AND SYSTEMS

■ T1 ,, • „igy228) ----- .T...™ Houston

> 0 poM sk July 1-3 Eleetricai Engmeering Pair— ELTEC (01-4S6 1951) Munich

^^Vc^i -fcte n i)«c. Db 21-24 ......... Security Asia Exhibition (0^3 38085) Hong Kong

July 31- Aug 3 ... Hamburg Trade Days (0202 73284S) - Hamburs

Mares arm spencer 7prf*f z.*sk Aug 1 11-15 ......... International Trade Fair for Hotels, Restaurants.

tUTTHSc Ev ^ hed Catering and Food— HOTELRES (01-681 768^ Bangkok

WX? o^-k* Au ®- 1S ’ 21 Business Equipment and Computer Exhibition —

2^D^A^ nd i% H SS?Ki. c 5aSr d COMBEX (0483 38085) Hong Kong

Aug. 19-21 ... . -International Elec&o^lc Packaging and Production '

Mww- (Mgraw. L.i PM iAaspc. Do. . - Equipment Exhibition — INTERNEPCON (0483

Ualgar - Haute 71<PCPI 2 3 37 SBC. Db ■M ca . ri .‘! lf WabertJ ^OMldNtpa*

i-dcT Lrr ShK „ Muelellap IP. u"d W I D.»3 d

Trattord Park Esuin Dbs l-'ic. 4bK Manthester SMp Cans! -Debs Dn
TreraNitel Coal Cdrp Db <19B7.9H R2M5 P*reDet>i i.'ree. Da PerelstDe
. 13 2 Sar. Ob (I9B7-91 • R4.1 0 1 3 -25 t>c Dn^fcnCncrDebt 2 oC

TWMOR Dnetopmeat Gra BpcPt 2.1 PC- Marks and Spencer 7Prt>f 2.45 k
L n 3>c 3h. 4'sK Marston Tbompaon and Evorslw

Tube Inv. (T.l. Grp) Ln 2 9 3.B5 4.5K 2 'me- Da Ln he •arm

Sretthft—ASrtSrtiwSr US 0 Co™. rSBffw t *jwnRff apcP|1 S - 1ZS ”

SreaJST 31 ^ C **9. ' Central Dhn. Props. Db 3 k

■■ V5^"T* *—■ ssxss'-Aiixg &&£?"■ '*•*

' Ho “- ° ,a,M l?SSS , 7 SE4SS‘ l .

Chepstow Racecoan* Ln 2hpe

vi MEETINGS— CHener Wliwkt. Db S'. 4 k .

S e . . Chesteribeid Prep*. Db ssmic

Esb ' Chile Coauimbo Rly (Assd 1948) 1 hOC -

IKK" , . Chubb Fire 5cc Db 2 ‘ik

. 1 Arthur) Ctv Cite Ems (US Mi o.23p

,nos - - dav (Rlchardi 6pcP| 2.1 k

22? Clvde Port Autlry Jpc llrec. Apt, 2 pc

wSaasm*.

L*orenc» Seo« Deb 3K- '

Law Land Dtn Hs.-sti, 3bpc
Lead hide 7a>c Pf Z.aSoC. Ln 5»*K ■'

Leda Inv T« tm» 35*K
Lap Gp Sk Pf U5K
Uoyd* Blc Ln XLpe

-Loudon and Gartmorn Inv Tst Ob t'iK >
Condon, and Midland Inds SpePf 1.75PC-
. Db .4(|K

Leodon end Pro* Tst Db 2b«e
-LsnikD Db 3 J«k '

▼tinier antTMewall Lu 4. 5.05, SIik -
Turriff Carp 5>-KPf 1.925 k. Ln S'ik

S ods Ln 3 >«k
USMC hunt Ln 4>2K
nlosm Industries Lits 4<y. Sue
olute Dbs 2*. 3-apC- Ln iCn» 3 ',k
uniiever Lns 2>«, 3 upe

prism waterworks 4.9 k (fmJv 7 iwj £L» rX V» iiJK' Manor Nan erp Motors Ln ape

Cons 2-4 5pe """ /BCi **** ^Ale«) In* Db 4hK ' Mappin and Webb SiipcPI 1-9*5

Do. 3.5 k llrnlv Spo Max IJSae ln ^i “ b ** ,pc W 2.1 PC

GAT7C D Qjre°locte SlWln^gSe _ _ S3^K!'lS ISSUES ^

^.PUna SA Flta Rate N«« 1BBB

Jirs j«.— Trw!LTT2 saffiasa ‘av

‘ United British *Seniritiw Tit FocPt 1.75 k .Mitrofthp SeoropreetiEcs IJKp

^ortwitt 1 ? ^ ^ IOt ,K “ “alPShS* ' ns,U£tr * 5 7 "^ t625 «- «j Jjf^-ttren Wawr 2 A^f*mly s.-k)

ML H Was Db 4 IfK . United icfopdom Prooertv La dim ^%a^ x ,f S!. v

*££Sd" RuSS* IS* ' United Newspapers BKPf 2.1 or, Vb" W R^H oS

MxntiglKM Bronx* MduBUKPf 2.BA7 Sd£ Vfxjcsra LB SpC ■ tfiblw 6 rf) RrtPf 19B4-0Q ?. 1 pr.

?n flK 2 8a7SoC waddlnsnon Uphn) CkPI 2.1 pc. BkP»

WObb SllPCM 1fl250C - ■*- WidKm StrLaoer DM Sfs. V*. ItK . 5? .TOpeRedW 0 ! Bps' f 5K* f " 1986 *‘5pe-

Marswn Thooqnpn and Evershed Deb
2 'me- Da Ln Sac
Menztes Uchn (Hidast 34>5p
M^nev Darks and Harbour Combined
UiHN- ore -i “s; 1 V r74-S4>; 3*uoe ■
Mera^r UMp) TiyprPf 2,«25 k
M et Wihr Brti East London SurDb 1 i-oc

” pS ^ 2 - 625bc - °°-

Marshall rrhonws) (Loader) 7 kPI ZASoc 3- r H D b 5 3 hH «; 4 C

MwsMtoOUHte* Db»a,dc _ 5 k aiS?. i.

Harrison* C rote rid EhocPf L275*c

,m « NV «ts Rate N«S 1986

Ported fiKPf" ,ne “"Its O.flp

Sr#tDn V * r E "*'; c ^ 1 «» £ 8 -37S ci5rt5-u 8 h« ■ &K*r Ob 3bK ’ ’ ~ C -

a ^jJsssr%Jnsz & «3as 2AS ~

Brtaid? u™V_ Cummins Engine Ln IHpc

• »««*«*■ c «°« Fibrosis RCMVCh Inv T» Db aijpc

C 12 e CKJ A,1 * n ‘ '■ K,n ° WU, “ m Stt®**- EC - Mgrb* D0?5 »s n 985-85). 34 <1979484.

• i P , r ^?' Awv HM “- T - Avery DS^’B&nVaKPf 1-9 25 pc

. K 1 ■JK!2Sf»^P SSSJgS/ffif**?" . •

Ward (Thomas W.l Db 4 Npc- 1a 54k
W arm. Wrinht and Rowland Da 44 k .
Waterford Glass Ln 5\K
ween Petroleum Cov Pf tAust Reg)
SA1JS75. Cnv Pf (Bermuda Reg) 3A1 .375
Weir GrpDIn 34. 5K . - . .

C ?& a &£ hs *2> n ’ 2H ° 982 '* 71 ' a*r" as -iSS &S? iSi25K

K«rr-V|sS5& TsnZZ* Da HEJ

rFmlv Ppr) RedPf 1984-85 2AOC. Do
iLZor (Fitilw errl RedPf 1984^93 2.1 k.
°5 0 *®S*a4Pf 19B2 4ot Do BoeRedPf
1984 4 pc Do o«cP*dPf, 19BE 4.5pe.
.D; MKJtaffl 19B5 Spc -
M-d^uswv Water DWt* 2. 2b. 24
wiiiam* lads TJ» - .

Mite- HkJns Z FSo .

Monsa^- .Core O-b 3 k 1

Mo»- 0!« fr n« 2 Po

Mount Charlotte lev. 0.770 •

Mowlem (Jdh.nl 7.GZ5p
MurMow 4A„ J.» 2 u

.. : yuwuj

Auk. 27-29 International Hen's Wear and International Jeans

- Fair (01-730 4645)

Singapore

Cologne

BUSINESS AND MANAGEMENT CONFERENCES

June 28-30 IAEE-BIEE: International energy markets— the

changing structure (057 282 2711) Cambridge

June 30 Energy Business Centre: Engineering Contracting

and Sub-Contracting in. UK Oil and Gas

Projects (01-439 9021) Me tropole Hotel. Binning!

July l ............ Institute for Fiscal Studies: Developments in ■

American tar policy (01-828 7545) Regent Palace Hotel. W1

July 2 SMMT/BOTB: Third Automotive Export Con-
ference (01-235- 7000) Metropale Hotel, Binning

July 5-6 MSS Computer and Business Consultancy: Manage-
ment by objectives (Worthing 34755) Worthing

■ndy 7 Energy Business Centre: China Offshore (01-439

„ ‘ „ I./..: Cafe. Royal, W1

Jnly 8 CBIs The Protection of Hearing (01-379 7400) Centre Point, WC1

Michel I b Tyre Db S^PC - Western beep Lev

Mid Kent WHer 3JK tf nriy spo Con* , Whence Db 3"i*

. 1.750C. X5K (Fmhr Spc) Mix 1.73 dc. WhitwortJi ind MI

'^Srw R 9i l Sr Woi ' lL ' <1 and 'Woollen Mills Murray Caledonian “'inv. T*t- Sue PI i 7 Sw
vSSSn^p-LoyeU Db 3.099 Blp SLSST"^. ^SL^SSL " ”

Natioml

1.1 Sue

1.7SOC. X5oc (FMr SpA Mix 1.73 pc. Whitworth and Mitchell Textortal Ln 3 ' ( rc mV'J!? ;. r , , . .

3 -5 pc (Fmhr 5 pc) CorePf 1.75 k. 3.8Sk -- wnifs-ms and James lEmn) 9-SpcPI 4.7 etc nlSJL '

(Folly S-sPC) Pf 1984 19 25 pc. 3.85 k ' Wrillanwofi Tea Hid os SmW 2.1st “h. 2we

(FBily 5 >»C) Pf 1981-83 T-B25PC. 4Jtec W}l»" (Connolly) epcPI 2. Spc. 10>:KPf 7 ^ >c « l W :li ~ 9a . 3^iPC

(Forty find pf 1SB5-B7 2.1K. Uk SJ5«; _ Wcwcasii^upon-Tyiio I'w Imt.i!

j|Sy Spo) Pf 198^8? 2 ?TrcT' 4J5pc Clore. Maver Core 6'spcDb

S.rs.if-S. ““ * 2 “ vS&Z&Stt? Bmitf in

MM SOuthpre Witer Obs-lb. 2 is. 3h ■ -SkP* 2.1m

JJuwtln, Metropolc Hotel. Blackpool. 2 3 D

.■3&E*3 &S

• ■ K S3Sre M °K| h " H,Mrla, “«e Cowley. ' jUTSeiRMI ISocLn 6 Uk
P« tO 0 IF.i. Burlington How. Easthodmo. SS ^ ISpcW 2.S25PC

■Sfr«S4 s ra-«- iS^£F W3jpe

Sandhurst Markrtino Cni mii o ufw DottMMi LU TipC

- Crewlev Simw iVin swwuo Way. Doulton Dft iUpc. Ln 4lmc

: Uniter* -Tin Areas' rit. D I Ef Doulton Eos HtKl.Dh Jhrt

Dclte fincPf 2.1 pc. 41tKPf UTBpc Dbs Midland Bk Ln Mpc. Ln MK

21,. Jij. 3L. 4 k woivernampxon ana uuoiny Breweries

* 2 & £ v*

MWd WRwtererbud (Western Area)- Pf y^iSre 'chemieaH 5 k Pf 1.75 k. Ln

Midland Inds SpePf 2.1 k
; -Miles Radnurn Ln 3 tree
MIKprd Deck* Db 1 bpc ,

MHIbank Tst Ln 4 'jk
M lttheO Co«S Gre 3-SKPf 1.75 pc. 4J
Pf Z. 173 pc

Mont I art (Knitthvg Milt*) 5KPI 1.75 k
.M oomdc - tm Db 4 >-k .

Yorkte^nf'citemleals 9K Pf 1.75 k.

thud soar! iuly i

COMPANY MEETINGS — .

Albany Inv. Tst., 43. Castle Street Liver. Oldham 4pcDb 2 pc

Newcastle- upon- Tyne I'jpc Irrti. I SrtC

N t , 2S5* , L'!« K ®? , *t!l“S«. W * ,8T 7VpePf. July 5-6

19«6 3.875SC. 8’mrPt. 18&S 425k ^

Njwey Gp i. SKPf 175 k - .7^^

T «- Z-7SP ■ JUIy f ..
Nanh IMF.) 4.2wPf. 2.1 k-.

Npr*»i Surrey Water Db. 2V. ■ 3 V 4W Tnlw S •
Nor hern Ireland Elec.' 7*>KGrd. 3iSe J1 ?*y 8 —
SettritJei Tst. S'-bcPf; tjhsk July 8 „
NottiRoham Manidactuylng J.4p. Lri. *3 Uk O

June 30

Julyl

July 2

July S6

SVd y 7

Cambridge

Metropole Hotel. Birmingham

Metropale Hotel, Birmingham

United -Tin Areas,' 2&U3S CWv R«u 4 pp Doulton Eng HWjtt pb 3»sPC More DTnjII lOpcP* Spc

12.08 ' Rwl - EC Drake and ScuH Httigs 4.9pcPf 245 k Mucklow (A. and JJ-Grp- 7KPf 2A5 k

Walker U. O.) Leicestershire mom Houm JP^SL i 1 *, 23 ^

vnSSUn ; d J Mo « Houm.

t-lSS 0 Road - °*ribv. Leicestershire.

.I^-ARD MEETINGS— ■

Fbulu
Amm
- RPB

erfckho uK Dudley

ItOVPilHQhlltn

Inttenitlonal Timber
Mteter (Mnrteoue LJ
P y s on Jenta i.

^- Patents

Hvrn» Ami arson
Hadlvnd

■ Havtcre H * lWOn *

Liner off KUdpiir

■Threnmorton Tst

. Jg VIPBW * INTEREST PAYMENTS —

4pCPf 1 -4pC .

All'idtatrtal Product* 6pcPf 2.1 k

a£S* Ahunlnlu^nLIKl’Ln

MGSMWWe - -

Ailnat London Praps M (1988-931 3 5, pc
Anglo Scottish InvSt Db 3'mc
Angto vaai w it, i 2 n<noc. pi sk
A ntofagasta .City of) 5 k (now 3ue) Seta

v „ . » pool. 2.30 a'ten. Robinson fiocPt 2.1 pc

5pcPI 1.73k. 4J5PC British Inv. Tst.. 48. Castle Street. Edln- Owen Owen 2p - *

„ 0 _■ burgh. 12AO Pearl Assurance BocPf. (Free' of Income

Util SpePf 1.75 k CombliMd English Stares. Institute of Ta«> So

* j Director*, i IB Pall Mall. SW. 12.00 Pen.nsulir, . Oriental .Steam. MevlaatloB

2 5PC m Downietme. MoiThantt House. 7 West Of. 7o - ' ,

Grp- 7KPf 2 A5K George Street. -Glasgow. 11.00 Perry (Hamid) Motors 2.Z5h

P or" , 7»* r ’ ' 0rtc,>fa, -S*®*™' Mmrigatloo
Perry (Hamldl Motors 3.Z5o

Wravtan premier Inv Tst Lns Sb. 3*<(A)K Nirterdoob Rubber Estate O.Tp
Ductile SteeH SpePf 2.10C National Westminster Bank Ln 4(fK

Dufay Bir ins sa tic Ln Shoe Neil and Soenccr Htdos Ln 4 k

Dnfav T*tan'ne Ln S'sK _ Main (James) Hkfgs Ob 5*aK __ .

Dun loo HldDS Dhar 2. 2U. 3 Vk . New London Properties Dl» 11b Z*nc

Dwek Group. Winchester House. 100. Old Petbow tUdgs. lOpcPf. Sec
Broad Street. EC. 12.00 Phocntx Assurance BSoc^ .

Fine Art Developments. Fine Art House. Pfessey 3.542c .

§ ueen Street. . Burton upon Trent. Pott London Authority 3 kA Ifejae

aftondshlre. 4 .00 Portals HU*t 8.73 d

July 8

July-B

July 9

Portals HMg* «.75 d

IPS: fcventory cost and control (0990 23711)

Leisure Consultants and Reed Taylor: Leisure and
Work— «he choices for 1991 and 2001 (01-377

8833) ;

Resource Surveys: The Soviet Union and the
World's Commodity Markets - in - the 1980s

(01-390 0126)

ESC: Sponsorship— New media,. new developments,
new projects (057282 2711)

Cafe. Royal, W1
Centre Point, WC1 . .
Kensington Palace Hotel, WS

Cumberland Hotel, W1

Cafe Royal, W1
; Selfridge Hotel, W1

EI5 Gtd SKPf 1.75K. Db li-pc. Ln Inc Nqwnren Indus Ln 5 UhC

East LSxSSlre Pw5?Ln SVK Newport. fl.D.WJ «loc Gw 1986 2K

East Lancashire Paper Ln iLpc
East Midland Allied Press SncPf 1.75 k
E astbourne Waterworks Db 3A, 5 tape
Eastern Produce La 5 UK
Ecclesiastical Insurance JOpcPf 5K
Edinburgh American Assets Ln 4K
Electric andGeneral Invest Db 5.05 k

Erobart Conan BOOS

Empire Stores (Bradford) Db 4Vpc
English and New York iW 5pcPI 1.75 k
E nglish Electric Db 2*1 3 ’-k
E ngHsh National Invest D&f-pc .
English Property Caran Db 3 Vk. Ln Bk
E mil a Finance (UK) Ln 4>^pe
Estates and Agency Shwl’l i.75pc
E states and Gen Invest 43)ecPf 245 k
E verarOs Brewery SKPf 1.7 Sue

Fleming Far Eastern Inv. Tst.. PAD Portugal 3 k (Itt SeO I'lK- 3 k (2nd
Building. 122. Leadenhall Street. EC. _^r> 1>ipc- 3 k (3rd Sen 1 4 k

News Internationa) 7pcPf 2 ASK. BncPf 12-00 _ . Powell Duffryn 4*.DtPf 1A625K'

2.8UC. DbsSiK Hlohcrort fay. Tst., The Rose Revived. Prooertv Sec Inv Tst 8 k P i 4 k

Nowton Chambers SKPf 1.75oc Ncwbrutae. Oxon..12JS0 9IT and : Northern 2 Jo

English Property Coron Db 3VK- Ln C
Ennia Finance IIJK) La 4W
Estates and Agency SWW 1.75 k
E states and Gen Invest 43)ocPf 245 k
E verards Brewery SKPf 1.7SK

FFI (UK nuance) A Db Shoe

Fbi'bestowe Tank 'Ktepts Db SSjk
F enner u. hj (Hldgs) SASpcPt).92Se

Northern Engineering Inds 3 KPT 1.5 k.
5.375KPT 216875K- BJSocPt 4.I2SkT
□b Slide. Ln_3lj. 41-K
Northern Sees VDb 3bK
Oirex Ore Db 3\oc
Para mod et Realty Hldgs Db 4><K ,

Peachey .Pr operty Core. BncPf 1.75 k
P earson Longman Dbs 4. 4U 5l»K
Pearson (S.I SpcW 1.75 k. Ln Si*.
_5 >4tot|yjconvlpc. In 2. 2001-05 5 Iik
P etatas SpcLn 24 k
P ent land Industries Db SHPC
Philips Finance Ln 2ane
Pitney Bnwes Ln 2>*K
Plttard Gre giiKPf 4.75 k
P leuey Db 3*soc

Marls and Spencer.

Hotel. Lancasrar Terrace, w. 1.1.00

Lancaster BIT HJSn

rn Inv T«L ph i2hbc

More O'Ferrail. Browns Hotel. Ajbemaric Drgn GUocPf 2.1875 k. SKPf 2 -Bk

rri l S f ityi.^ M ^wir Db j^r7 n.iiu..u « <nrH ^jitcr Cfudburn SKPf 2-1 K
r ,P°£i r „» n 0 Railway 9 JtacPf Priest rBenbmln) .Gre Db 3K

nclaT Corpn of America I7cts

Prtw Fin Grp 7KPf 2-45pC

Omen Moat Houses New Ln 5 toe. Ln

Jltac ....

Street, W, 12.00

Weeks Associates. Royal Station Hotel.
. Hull. North Humberside. 12.00
YorUyde. Moorbrook Mills. New Mill.
Huddersfield. 11-30
BOARD MEETINGS—

Final st

British- Tar Prods.

Dennis (James H.)

Evans of Leeds
General Electric ..

Greane King

Scottish aed Newcastle Brews,
stead and Simoson
.iStarim*

.BctL Brothers . .

DIVIDEND a INTER9ST PAYMENTS- 7 p

AMAX Ik Sub Dtf 1986 Jot Bomnev T St -=kP| 1

Ranks HovH McDoahH EvcTsttt 2.1 k.
fincAPf. 2.1 k. GKBPf ‘2-TK
.R"ttl|fc 'Great Bridge) SpePf 2. Inc. Bk
■ Pf 2.8 k _

fearilnq Con 3 k 1 >:k
R eed (Anstmi Ord and A 2.46n
E rno hi trcPi 2-1K
Rev .•TTnetorm Xlothutg^ ,3 k •
.PICi’maASwiKl'i and Hybrirtoe Valley Water
Richardsons Westoarth 0.7 So
i*Dh 2gr • ■ ■ • .;

R'O Tinto-ZIK £o<i Reg 10.5o. Br103«.
3.3Z5 kPF 1JSfi25pr. 3JgcBPf (Reg)
1.75 k. Do (Bri. 1.75 k .

R war -and - Mere Tif SpePf 1.75 k
R iver . Plate and Gen. Inv Tst Db 2nd

Angone totihfuff to attend cmg oj Ike a bone events is wMsed to telephone fte organisers to
ensure that there has been no; change in the details published!

Financial Times Conferences

ilNIT TRUSTS — THE WAY AHEAD
London — October. 13, 1982

'KOta^^ify £> 5PC (now 30C) Stig »jg» ««" jff CM, *T* i J Grp lOpcPf SK

mtewre 7^ V asL 1 ** FlnlSy P^lSil^ Db?w RFD GrpS>;DCPfl .925 k __

l/i^P

■= : W »-

-Aooieyard 7 pc PI 2.45K Finlay Packaging Db3t.Dc RFD GTP 51: KPt 1.925K

Argyll Food* BpePf (Tamp sun 10/5/82) E. tah Lovell GijpcPf 2.275 k. Ln ibK I-75K

4k F, c*wl BhPcPf 7 Z75pC. Ln 4<1K - Raok 0lDn Ln* 3. 4 k

^nrtage (George) 5KPf 2Jipc. IDtjKPf rfm^AnmOan lnre«r?tt SKPWJSie. ^^McD^all^n”^ W,PC

JI^R^4,,&»Pf Ln 2 S l£ 'T 7125 *

Aab and Lacy Db 4 k Fogarty (E 4 lO^pcPf 5.25 k ... 5«9« P«»P HldK Ln 4 V«k

■Rdmnev Ta ckpi 175k . " 5 J ' ' • . .

. A^rjtocnTconstreaiTO-a.TTp _ . ^ M ^ 5U,X: ?>/ Modq) Management and the Unit Trust Association this one-dav conferehcp win

A ?9fi9 ^k-^kdS* i 95^B9 ??k -- Rurai_ and inds , Bk w. Anttraiia s'ipcadu assess worldwide investment possibilities, with special reference to the use of unit trusts. It will be

Albright and wr&n.Db ¥/> 4? . „?.' OC .. Of particular value to financial advism* immnn« ...s* TT.J 7ZZ1 -

Arnwtrang EqdpmHt 6*tt>cpf 2^75 k
A rndale Property Tct Lr) Shpc

Aab and Lacy Db 4 k
_ ^AiWW Ei-jcM. U7 Sk. MkH X
Aspro- Nicholas SLiKPf 2.0125 k
A ssociated British Foods Db 3 UK
Associated Leisure Ln 3 ’.pc

Shpc

MfKPI IA1ZSK

Aln^Veaiber^IMiK ^K^ 4.5 k ' ' Salts (Saltalte) *i;pePf , 1575pc

t ®»- _ 37 “- SS" „ H ,S5 jM-’ua

. - sne and District Water 2 JIk (fnrtv — - . — _
4pc?Pf inon-cura) 1.4 PC. 4.9K Ifmly Rlgntwlie Ln 5K
TpejPf 1986-88 2A5pc. Db l 2«x Hi ••Wo Tta*o-2hvc Con

. Avana 7pcPf 245pc
Avon Rubber 4 .SpePf 2415 k
A v ^T*bu ry Brewery Db 2 pc

ifc jtr iifg

3a mo too Db 4Isoc. Ln .41* K ?!?¥? 2 BePf

Bampton Progarty Dbg SU. 3>it» CBr *- 1 ®

.-Bariow Hand Uni Notes 3 ’;k D.T. Japan Ini

Barnet 14pcRd 1984-85 7 k Gudrk tMalay(

S rranQuilia invuts, Db* 2 v. Stac S*n*T. Bootl> '

rratt Devatauinente Lo 3 i«k Gaske/i Bread/

Bain and Portland Grp Db 3 *ik General Acrid

Tp^Pf^l 986-88 .2j45pc. Db X
Porte Db 3.05K

Fortnum and Mason 7ucPf 245 k
F orward Tech no logy IntJi Ln 4 k
FOSKO Mlpsep 4%»rfT 2.1875 k
F oster ijohn) 4>zPCPf 1 -575K

Reeves (F. X)' Db SbAC- »•
Repfs prep Hldgs Ln 4l«K
RelYon Grp Lo 3^pc
Rlgntwlie Ln 5gc

Amo/agasp 'SS'I'IJ. Bollwia Rlwy Db 2K , . .

Sbac » Arcoetectric (Hldgs) A 0-5 p l^ccombe Marshall and Campion 14o

41«k Assam-Dooors ' EocPf 2.1 K* ^ilentnl*iht Hldos 3o

Ass Book Pub 7 *vkW 5-K555 - . Simon E-o*8.So. FrePri 2.1 k

Am Dairies Gp 9'iKPf 4.875 k ' 1 Siffli jjjrcEil 2A25 k •

An. Fabertes 4i.pcPf 1.6o25nc. 8pcpf Kvato Grp SKPrf Z^oc. 7>rec(19MV
lew- Ln CI99S-2000) . 2.8K. . , ' c’ hl _. . _ ■ Smith (.1) (Flekf Nwuli 5 i-KPrf 1.925 k

' AbStrnUa and New Zealand Staking Gp Sta Anti SkIihc (1916 or after) 1 Isk

*71 ?-75pc __ . . 14 tts S-i Staffs Wtrwfcs 4-9ec(Fmlv 7«

fpea.sd. Ln ZHk New- Ln Cl 995-20001
£2«34pc

Robertson Food! 5_5pcPf 2-75pc

a^r H^ oh 5^" *™ . ■ Under the chairmanship of Mr Mark^ St Giles.^ ChaSman o£ the Unit Tm iiiSS f«S »n«i w?TT
Swra** »» Managing. Director of Save A-RrSpS-^ GhS?Ttan£ tbM^SUriSil? SeakSs ^H

ttW c " np, °" 140 “Jt deputy Chairman and Joint Managing dK. ffllo uSTSSJS

KvS2 t E ?';!5iS , v£^!? a:,,Be ^ P*. T-^Pepper, Joint Senior Partner, W. GreenweU and Co: Mr Vincent Duaelebv Edimr nf

<^p SKPrf z^k. 7'ree tiBbiV ' '. _Fi®RnciaJ- World Tonight" and “Money Box,” B.B.C; and Mr T.'P. F. Miller Marketing Directo**

Framlmgton- United Management Ltd. ’ MarKeun S director.

Robinson Bros (Ryders Green) llpcfff , bjL,T. Inds H.Sm

5'JKPf 1.925 k

5.5K , . .

fiocfcware Grp GbpcPf 7-77 Sac.
Romney TR Ln 2%pe .

Ronner llbKPf 3J97K
Rotorfc aijKPf 4.75 k

GPTX Core. 60 CPf 2.1 k. lOSKPf 525 k
G.T. Japan Inv Tst Ln 4bK
Gadek iMalavsIa) Her had Db 5 k
G anwr Bootb «kP( '2.1k

Gaskeli Bre^toooi 5ncl^JI.75K . ■ St btharines' Ctdleoa' i^Aibridg^Db 31 -k

General Acrident Fire Ufe Assurance Lne St George's Grp 3p

BICC PLC 7.04OC. SpePf 2.1K. SbpcPi
1.92Si»c • -

Babcock Inti SKPf 2. IK. SpcPI 1.75KM
4pcPf 1 Apt

Bahia (S. on Brazil SKGWLn 2bK, 5 PC

FdpBds 2'SPC, 5KFdaLn 2’rae

Banng Bros 4i;KPf 1 57 -5p. 7b»cPf 2.625p

Rnberold- (b B<«K .

Rugby Portland Cement Ln* 3, 3 ^ik
S afeway StOTrs SScts • ■

AMrtW Tit SJkW 1.8375k

NOTICE TO HOLDERS OF DEPOSITARY BECETPTS
REPRESENTING COMMON STOCK OF • . r

Ruhota, Ltd.

(Kubota Tekko RabnsUki Kaiaha)

Amendraenls to the Japanese Commercial Code (die “Code”) asd-zekied lc^eLalrtm trill affect .
fwrtttiw xjghis of jj] e holders of depositary receipts of all Japanese companies,- inclndmg deposttary
xeceipts (“Beceipts”) representing shares of Common Stock of Kubota, Ltd. (the “Company”) . In -
light of this legislation, and in order to effect certain -other Ganges in the deposit agreement dated'
September 15, 1969, as amended and restated as of February 3, 19761, among the Company,. Morgan* .
Guaranty Trust Company of New York, as Depositary, and tbe . holders of Beceipts- (die ,*Dieposit .
.Agreement”) , tbe Deposit Agreement is being amended and restated effective October 1, 1982. A. copy',
of the' Deposit Agreement, as amended and restated, will be available for inspection at the corpora 1 C
trust office of tbe Depositary in the City of New York at 30 West Broadway and at the offices ol the -■
Subdepositaries. „ • ,

On and after October 2, 1982, the Company will he proHKted by toe provisions of the Code from
issuing share certificates for shares of its Common Stock (“Japanese Snares") in any number con-
stituting less than one “Unit," which in the case of the Company will equal 3JW0 shares, unless and. .
nr»rf7 changed as provided below. Consequently, upon surrender of:a Receipt or Receipts for the idth - ' ,
drmral of Japanese Shares represented by. such Receipt or Receipts,, the Depositary m. tl be able to \
eject the transfer and delivery of only t hat portion of t bfi Japanese Shares that, comprises a Unit or
an integral multiple thereof. Tbe Depositary will issue * new Receipt evi d enc i ng die mufelrvershle
portion and will inform, the bolder of tbe number of additional Japanese Shares required to equal a
Unit . ' ' . .

Barton Tram Ptg Ff 0.7p Si>"ifyrl»>y fPlwr Wear) :

Baxter- TrawmoJ Lab* 11.5 ett . 41-KPhAn^ 2 I 4 K

Bemiix Corp B3 m - *vora Gre 1.2 So

Bwtobek PLC SocPf T-75PC. ShKPf 6w-vim !k.ii<pc

1.92SK IT Am»r1can Inv Trvt Dl> 21* 21*K

BlnwIitBliam aod D*st Tst 5KPf 1.75K TR Pactar Ba«l" In* Tr» Db 2 k

Birmingham -Corp 2>tsKl925 1 tiK# 3 k T;rm»c «Si«"*-Prf 2.75 k
1947«>r Piter) HjK. 3pct1902l 1-i;pc. j5»lor Woodrow 13.157p

S-S Staffs wtrwfcs 4-aocfFnilv 7pc)A

EyTic 7 ^ 245oZ PC ?.SortFSy 5 bO WORLD FINANCIAL FUTURES

“Fri 1.75oe. 2.1 ocfFmlv ZpOPrt 1.05k. , , ' „

: London — September 13, 14 and 15, 1982

5?U a d , "3^^& 2 ' 4S0C ‘ 06 1V ^terMtio 1 nal F FwjSil^IS s “ H *%***£ t0 p 4 recede ^ opening of the London

kitMwar- wriahtaon Hixas n.itn iuiernauonai r map dal futures Exchanee. It comDnsEM; two innlnr nvonte an mtan<,h r . n ,i

^“^"tt'wTtaht^q Hiras 9.1 5a International Financial Futures Exchange. It comprises two maior events, an international two-dhy

,,in€ ' tr ^n Se , minar - The Terence will analyse d^eSipmVnto to

m *5" , on 1116 of the regulators and financial and

Sni^ques USer8 ' ^ semina ?- wi31 P rovidE Poetical assessment of hedging, arbitraging and trading

Bta£kSure^'.raciriwi i?<K, Apccx* 2 k T^g^^^H'^dreS 1 ^w5vE ^olUcTOPrf A II enquiries riiould be addressed to:

Btucfcett Hutton S'jpePf 1 .925K' 'Jl* 1 !®.?! 25 * ifl„ raw v» ' -»» -

Siocfctry* PLC 6pch Z.lK Tharsi* 2^n

Bluebird Cort»,6p<« 2.1K ™SS5 0 rr? T ? ,, c S- 72 2 e K l

Bodvcote Int 20 TDllrq rn 4.5p. 4>5SDChK£5) 2J175QC.

Kr MrCCOfBflBM 2.125P/ 4AlcPf 2.1-PC 4.55gc^rf(£l J 2-27Spc. SJtSpcPri

"WTaIS 5,=flCM , ' M6PC - 7PC T^4^ray Brute I Rlwy UtMlgBd, 2«'

B^r^t^rattW^JKT.TS.rt. ^■VSp rf,7sPC '

Tharsi.'zTss The Financial Times Limited

J^omsonpren 4.72KM 236PC. Db 1»-K _ A4U1LMCU

4.||KPrt(£i? p i&gF^ggSsi Conference Organisation

Z.625DC - - —_•_** — 4 mrn

T ? r cnio Grer Brute ^wy i*tMio«*i 2 jx . Mlltsfw TTonw Arfimy i

zjocpi 14K. Bse'4*c. tee 4.5 k " ' tESKLS , p.;£? p «s,«-iw ■»
Bowtborpe 1 .894® 6pcPf ^22S(K •

Bridon BpePf 2.1 k Truman 1h. 2pt

Bristol Waterworks 3 -5 pc (Fmlv 5*0 Pf UnUever SpcM 1.75 k. 7pcPf
1.75 PC. LSSpt (Fmlv 5>tK) PI 1v92Sbc. BpePf Z.BK. 20pcPftl 7 k
2.BK (Fmlv 4K) Pf 14K. 4.025PC ifmlv Utd. .“*5^ « [d M' 3p
Si.pd PI 24)1 25PC. 4-55K (Fmly, 6'»c) -UW. British Soca. -Db 2 J*k
P t 2.275 k EiPrSV Resource® Ik. 5Bct*

British AmHcn and Gro Tat. 5KPf jlrtted Wfiv Gra. 2Jto
1.75K UruHuav SpcLn 2'jK

British Columbia Elec istDbi 2 k Uiher-Walker 5pcIrt1.73K

British Shoe -Cun Db 2'tK X»«ona^Gn. 5p

r^Hi^TSTpc^.^ .teW^ZJlKPr 1.75 k ...

(HM9.I 41, KPt ^ftOMSRa ^fUm,

Brunner Inv Tst Db Z0C • •,"4^ 75 p'- Oinly. 5 , » c )

Bulmer and Lumb iHldgsl 2-17 p .A-gptPf afSl. V™_.

tSTx% Pl **** 4 ' 75pc 5*. sk: t ^ a fe2 4, 2J75pe -

Bnrmah Dll 7p • >F«« Kent Wtr. 7peH 3J5 k. Db

Burt Boutcon ,7 kP f 2.45K

JVliuster House, Artamr Street
London EC4R 9 AX

Teh 01-621 1355
^ Telex: 27347 FTC0NF G
Cables: FINC0NF LONDON

7pcPf 2 45 PC.

Urusuav SpcLa 2'jiK
Uiher-Walker Spcft 1.75k
Vaatona Gp, 5p
Vickers 7.45P

■Ward White 3J«Pf 1.75 k .

Watts B'ake Bcame 2^2p * -

W.- Hampshire wtr. 3.15pcPf Umly. 4ijprt
■4J75 dc. 3.85k (Tmly. S*2PO 1-925K-

- 4.2KPf (fmhr. 6pc* '2.1 k. 4.55ucPf
(fmly. Gki (1983-841 2J275PC. BpePf
„ 1969 *K- Ob 4bC
!W«i Kent Wtr. 7pePf 3-5pc. Db 2 3h S
' ®Lk ....

appear* or a MnOeref record only.

Cadbnrv. SchWeppes 3.3p.. ^jpePf 1.75 k wSIS HIAh” sSw® ^

Calcutta (PortJ India SocDhs. 2*ioc ■ vmvsi.' 1-M5D6

effectiveness of such ameodmenz except that- for mnendmantB decreasing the size of a Unit to a number
evenly divisible tota the previous Unit ««!«, studs notice ahaR be given at least wo weeks prior to- the
effectiveness of such amendment. _ '

These amendments to tbe Code irin not impair- a holder^ light to transfer Eecc^rtaoutaido of Japan

or to sell Receipts.

MORGAN GUARANTY TRUST COMPANY.

orznOTXOBK^Deporittzry

Dated: June 25, 1982 . i .

New York, N.YL

Calaariraod Edmonton Rly Db 2 k ■
Cambridge Water S'.pcP/ 4.125K. BpePf
4 pc- SKPf 4 pc_ Dbs 2. ZU, Z':k.

Crnin’i (HVdSJSl Z.3BP • •_

Canadian Parifii 47. Sets- PerpDb 2 k

Canning IWJ 2.2S4P

Cjpttol Gearing. T*t o.25p- ■

Cardinal Inv Ttt SpcPId 1.75 k. Dbs fj. 2.

2LpC • ■

Cater Allen 19.5125b
Cedar luv Tit Db 2'<K
Central and Sbeervrood 1 0gcPf Spc :
Chester Waterworks 9pcPI *.5 k
E ast Wore* Wtrww 6.3p<:(Fmly 9pOPdPri
■ <1992-94} S.1 Spc. 4^p«Flmy EpORdPrf
Chile 4bPe (now 3 k) (1985) i Asad 19481
2 UK- 41 jk inow Spc) Bds (1983)

. (Assd 1948) final pay merit and accrued
interest to 1/7 IB 2 will be bald on sur-
render of bond. Sk Series A (Assd

Western Motor Hldgs. 5KPf TJ25K
Willis Faber 7ocPf »Jp '

Wills fGcoroc* (Hldgs-* 4p .

Wire Playtk Prods. 1-22p
Wrexham E. Denbighshire Wtr. Shi

Wrexham E. Denbighshire Wtr. 8<sKFf
4 -25K- BpePf 1984 4 DC
Yates *W. E.i ri'xPl 2.125 k
Y ork .Waterworks g'?pcPf 4.75PC. lOncff.
1985 Spc. Dbs 2*. 21,. jiT St-Ctt-

Yorkshire Fine Woollen Solnners ShPept
1.75W. 11KP1 5.5K

■Young and Co's Brewery. Db 11 ik
• FRIDAY. JULY. 2
COMPANY MEETINGS-—

RdPrl COMPANY MEETINGS^—

RdPrf Barr Wallace Arnold Tst. Ladbreiee
19481 -DriJOcixara Hotel. Neville Street. Leeds.

*®f2i Dares Estates. Albany' Hotel. SmnJIbraofc.

*7“ a item sway. Birmingham. -Ifit.OO

(Asai Go ; dberg (A.) -21. ^andferiggs. Ctaipew,

i fts n* 1QJQ

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rmtoc Rrot A tt A go oroao Mrwt £C iZ.CKJ

Colne VaJlev Wtr. Db 2 (Cons* 2 2'i 2 *2 S 5vSlS!lr2h ,la i!y -uf*' 2B * ChartBtt » Sqmra.

assays?— — » «««.'

SSSited

Malt- lOJp

Cosail lOJpcPI 525k
Costalit Grain* B.Sp
Courtney Pooc IHIdos) (

Courttrtw Pope iHidos) 6pePf 2.1 k
C rown ZeilerbacA Corpn 57 -Sets
Dafgerv lip

Danish Bacon A 1 -So , '

Davenports Brewery • Hldsi 121* ■

De Vere Hotels and Restaurants 5p

Denmarlr nflnodom of) S>tK-1901 1-Vk

□even Kb (J. A,.) ZJSp,

Dcwhlrat 11 . J.l 1.03 d
D fnkfe Heel 0 Jp_

Bath 12.00

Tyson* ■ (Contractor-si. - Atfantlc Tower
Hotel, Chapel Street. Liverpool. 18.00
.BOARD MEETINGS —

Finals: .. - .

Cocfcsedee

PtisseJI Bros. (Paddington)
interims:

. Associated Fisheries
Oafcwood

TT- Thcrewl Syndicate '=:•

DIVIDEND * INTEREST PAYMENTS—
Akroyd Smlttwr* 40

ABBfieatioohu brai made for gramo/pennission u> deal Injtbe Unfl^Seai/fttefMBfcat on Tt« Stock EaAinfeioifaa

aidBBnentiiwiedseairfilaAli is emphasised that no appSodkwi has been £ 0 Bd 8 tbrtlws**aairtlie*(Dba«dmiBe(lB>fcing.

Drayton CowUB. Tst 2.8PCFf1^pC. 3-5 pc Afci»o NV Br FL2
. Pf 1.75 ^. 5K Pf 1 -?5K, Dh 3*2 2Vx AH led Warn 0.1 P

» JSoe. 5KPf Anglo Scottish Inv T«t ,0-9p
_l.7Spc.Ob 2’HPOPMP) Antofagasta (Cltllll BoUria IU

Dunlop 2* •

CnaPf -1-4PIC- 4.2K_/fmly A 5K).FHr 2.1 k. Bradbury Wilkinson ft

/WMijl^w (Chill) Bolivia Railway SpePf

1 WJ-opi 45 . f pc. wn I 7 «N> te*an. EFi 49 U

i?, ,; 5 c s , ..K 9a6 5 - 25,>c ' ° b 111 * l! eSSSfc^j*

f I . 5 J p ii. qc Fjmdw Apncuftural Ind* O.ftSp

Eaitboarne wSSks S.Bprtfmlv tociRdPrt H» ¥•*«" *™ ^ “p
(1986-88) 2-BpC_ af«o

KNIGHT COMPUTER
INTERIMATIOIMAL PLC

Pogietor fid in England— no. 1 6 382 22

Authorised

Share capital

£300,000 c ordinary sharKof5p each

■Issued and
tu ny paid ■

£272*500

Elec Ind* Inv Db 2 pc
Elliott av e’lrePrt ] .57Soe
Ellis GoWsteln BocPrf ziloc ■
Empfre Store* xBradtart) l.35pe
Esmarfc 46 OS

EeropMn ftritas 2. To . .

Ev-Lands O.Ep

Fahclodfih Cnttrcrt Grp 3-5?
Fanner (SW) Grp Slip
. Farnd/I Elec* 1-TP
Ferranti 5.6pcPrf 2.BDC *
Fine Art Oevelpts J.9p
First CMcaao Cora 30 ets
Flaons 6 p

FnJfcK (J) Heffl N.V. 0.90

French Kier l.ISp

GlMtan I'M. jj (Contractors) t.ip

Guardian Royal Exchange Aunci 10.75P

Hawker Slddefey 5.6a

House of Fraser. 5p

K wik-Fit (Tyre* Exbantt*) 0-W2o

Lawrence (Walter) 5.75p

Lead ind* 5.9fip

fitiersev Docks Harbour 2 d- .

Moran Tea Is . z ->1_«

Moriand Up

Mount Charlotte Invf.Ln 4Wx
NSS Newsagents 1.5P
North British Props 1.1b
Northern Engineering lod* Z,7Sp

rDncCS IJi worn w.v. y.w ns . . . •

Forest W Dla Water lOKRdPrf (19B3) gftc^^hSeSrtHiwSlSrt Tp **

•F* ' . • ■ ' . Peehini 0.B75P . ; -

. Galway Harbour Cammissibnere 4pcRed Pgrter Chadbum 0.3S»" „ ,

5B-BB 2pc ■ Rlck/unstvofth .JJxhrttfue. Vidlgy . .Wiw -|

GasJceil Broadtaora 2J5p ■ . .... Cons Ord 1.-75ne — uTS—. f.rl

General Accident Fite and- Life Assurance Ruud man. (Walter) Sp

8.75p. S'spcW l.MSp _ • - Scottish Hemabte TTtt

General Consolidated Invest. Trim. Etas Sears Roebuck- 34cu
• 2«». 27 hK . . SiUiermlnes lr£ 2o

General' Investors end Trusteas 3.1 SpePf Janoson «.) UIHd
1.375k .. Spencer (Gear*) 0.2p

Scottish HerttaMe Trust 2t>

offered to and are available in the Market . .

Parffculais of the company. are available in the. Betel OnlfetedSecurities Marketseivice
and copiesof such particulais may be obtained duimgnormal business houoftom.- i

Kuwait Real Estate
Investment Consortium K.S.C.

. .. Kuwaiti Dinars20 r 000 r 000
Medium Term Lx)an

• - -Managed and Provided by

— AkhEBankofKnwart ELS.C

The Coimnercial Rank of Kuwait SAK
The Onlf Batik S-AeK-. ;

The Industrial BankofKuwaitKS.C

Kuwait Foreign Trading CSonteacting & Investment Co. (SAK)
Kuwait Intenmtiooal Investment Co. s.a.k.

Hie National Bank of Kuwait S A K
The Public In^hntioa For Social Security
Knwait Rgal Estate R^ik K.S.C

• TRe Bank rfKnwaitand^te JVIld(fl? EastKSLC

• lluljiuted Bask of Kuwait limits

The National Bank of KnwaMATC

as Agent

JsSSTmM Tst. .SpePf" 1 ,75pfi

Spencer (Gear*) OJp
Start Bros 6.4 So

General Telephones and Electronics Corp. Ig* Ho 1 ■ g8p

-• ■77eti •'

Gill and Dnffus Group 4 .Bo

Tofloaat Carosjfotsp 22 cts
Transvaal Cons Land Emin 39.22462p

E, B. Savory, Mitin & Ca
20 Moorgate
London EC2R 6AQ
2 Sth June,19fl2 .

Grand Metropolitan 5«Pr I.TSpc., 6'dxJf SS2? w 55^ r ?£* w « ^* W7S «
a 1 A 7 &K usner-waiicer jp

Great universal Stares 4»»cAPf • 1 .573dc.

rpcBPf •2-45PC. 4i*peCPf . 1 -575 k 1 ' Z8p

Greece Soe 1884 (Ami. with aaeottKo

- C«rtt 2bPt. Spc 1884' SUoFdgflds of wfton CCwtaS) 7 f7BD
1965 2bDe Mon/epe W87 CAssTwIiit w Jnpey tSSroo)
accept Gerti ,2pc . Monopoly ftpc 1887 yiSSSde 12?^’ 1 * asp
StiaPdo^D, MJSSS. Sk 1881 ?S£ V 1^ 0 | l w T« 0.65p

<ASCd With Acceptance Cbrtl 2*ypc; 5 k
• 1881 StfqFdfids of 1965 ,Z>:bc. 4k
R ailways Ln -1 902 2 pc- 4pe5tioFdg8ds
1965 2 PC. SpcFdflLn 1893 tAssd with

- DivmEND 1 «f ,! ihnTRarr payments^- III

gsmil ......

■v».'

TECHNOLOGY

EDITED BY ALAN CANE

Why IGL plus 19 equals progress

Ian ici view Of local area networks

GEOFFREY CHARUSH explains networking philosophies

.-.LAST WEEK'S decision. by ICL
jnd 19 other companies to sup-
, purl the new European Com-
puter Manufacturer's Associa-
■ tion (ECMA) standards for
- “opm " local area networks
(LANs) is a bold attempt to
'• push standardisation onwards,
" but there is a long way to 30
yet.

LANs allow items like com-
puter?, display terminals, disc
stores and printers to talk to
each other throughout an office
Jwildins or factory, wired up in
a ring or an end-to-end length
of coaxial cable.

But many companies have
gone their own way with pro-
prietary approaches to network-
in'; so’ that there has been
"diminishing hope of intercon-
necting different maker’s pro-
ducts on the same LAN.

The ICL-led group of 20 corn-
ua nics will offer products that
use a particular version- of base-
band working with end-to-end
cabling based on the ECMA
standard, part of which is the
subject of an International
Standards Organisation iISO)
draft. Other parts of the stan-
dard arc largely compatible
.with Ethernet, the Xerox/
DEC/Intel offering.

But the “ ICL 20 ” does not in-
clude IBM, for example, where

surprise has been expressed at
what is seen as an unexpectedly
early decision. A spokesman
pointed out that IBM is also an
ECMA member so that the deci-
sion is M hardly unanimous.”
IBM thinks there will be more
than one standard.

In feet, the corporation has
made submissions to the IEEE
802 committee in the U.S., the
emphasis of which seems to be
on token passing ring systems
and the way in which SNA,
IBM’s own systems network
architecture, can augment local
area networking.

IBM has ho LAN offering as
such — yet, and it remains to
be seen whether, ■ When the
awaited product appears, it will
be “ open.” It seems unlikely.

Of the two main access proto-
cols (the ways in which the
connected devices can access
and use the net), u the 20”
have opted for CSMA-CD, which
stands for carrier sense multiple
access with collision detection.

Messages (sequences of digi-
tal data) are sent as ’‘packets”
from one device to another. But
any device wanting to transmit
waits for the channel to dear
(by sensing if the carrier is
present) before sending-

If the channel is busy then
either the sender 1 waits a pre-

determined time (related to
traffic levels) or keeps trying
repetitively.

In token passing systems,
the other main option, a d i g it a l
access “ token moves from
device to device round the ring.
When a device gels a token -it
can either pass it on if it has
nothing to say, or retain it, in
which ■ case transmitting js
allowed and the token is after-
wards passed on.

There are a number of
variants in access control tech-
nique, malting it something of
a minefield for standards men.
Eventually* ISO. ECMA, the
LEEE/ CCnr and other todies
will have to reach joint agree-
ment

But there is another conten-
tion — somewhat hotter in- the
U.S. than Europe at the -moment
.—-between baseband and broad-
band techniques. ’

A typical baseband system,
CSMA-CD, might have a data
rate of 12 megabits per second
; and employ one channel" for
multi-access of large numbers
of devices.

. Broadband proponents (Wang
for example) take the view that
since- a coaxial; cable: is to be
installed, it -might just -as well
be chosen and equipped for the
full bandwidth of 3wMHz or so

for standard TV coaxial cable.

Then, the cable can carry say,
three .separate lots of data, each
borne by a separate radio
frequency earner. One migi t
be a 12 Mb/s CSMA channel,
the second- could carry several
TV channels and the third some
Tow speed data channels for
other services.. ■

These three “ radio stations ”
are sent side-by-side in the total
cable spectrum and can be
extracted separately anywhere
along the- LAN— rather Eke
tumng.a radio set dial. *

For the ; .user, broadband
means that any service — speech,
video, dat a, facsimile can' be

accommodated at will and
added as- needed. A suitable
interface unit is simply spliced
into the cable.

Broadband cable com po n e nts
are widely used in the U.S. for
local cable TV and might be-
come. so in the UK if British
Telecom,- the. BBC, ITA and
other interested parties can
agree over the u wired Britain "
idea. Ultimate systems might
turn out to be optical fibre
based; eliminating -bandwidth-
problems entirely. % ...

' The .vieiw of ail taken '
last week by Rcrb "WSmot,
managing director of ICL, -is
that there are rather more

presang . matters to consider
than broadband," such as getting
baseband standards agreed for
truly open networking. -■

He believes that brfore'.too
long, companies that .do not
subscribe to standards" and try
to “go it alone ’’ will be left
out in the cohL

He -also -sees the seed to
accommodate mainframe com-
puters and: also a company’s
PABX, the. latest models of
which can carry low speed data.
( Several telecoms c ompa nies
such as Philips and ITT are
presenting FABXs as a form of
LAN).

No one; asserts "Wihnot, is
likely to throw away an expen-
sive PABX with 20 years of
life' left.’ In favour of a com-
pietdy.uew system.

ICL already offers Microhm,
a low speed- (1 mb/s) LAN for
direct . workstation connection..
Each of -these can be connected
through an appropriate: box to
the open system interconnect
LAN (it wiH presumably come
to he called OSILAN) as can
services ' such a s teletex, video-
text and wider area networks.

Thus, one works down a com-
r neh

pany heirarChy from an indivi-
dual, through an office; a depart-
ment and. out through a LAN
connected PABX to company
subsidiaries. - -

Workstations

OFFICE

Kioretaii Ambit)

ttHok

ESTHBUSHMB fl' " . . ,v . ,

■ j~ jfrbrfraroe

smum

Reswrcfr Saner.

Workstation.

■Waters

, . — VMeotnt
krUJJL. Services

Open System# UN flB KBIT
Other Mar devksa

lutenigMrtetephoma

all may be best for diabetics

13Y RAYMOND SNODDY

TV VO CALIFORNIA, com-
panies have combined their
' technological expertise to
—produce what is claimed to be
.the smallest and most
' .advanced insulin pump so far
/. for diabetics.

Pacemakers Systems, a
cardiac pacemaker company,

- pot together with Parker flan-
!> infill, a company specialising
: in fluid controls for the areo-

: nautical industry, while both .
. were having research carried

* out at the Applied Physics

- Laboratory at Johns Hopkins •
'•University.

The result of the coJIabora-
.-tion . is “ Micromed,” a
: miniature programmable
•-.pump which can fit into the ^

. palm of a hand and which

- measures only 4.4 cm x

• ‘7.1 cm x 1.7 cm. It weighs ■
c 67 grammes with full insulin

reservoir and batteries.

It is an example of the

commercial race between
companies like Siemens in
West Germany and Eli Lilly
in the U.S. to produce
smaller, better and more
acceptable pumps for a grow-
ing market.

. Insulin pumps are small
devices worn on a belt and
attached to a tiny needle
implanted just under the
skin. As well as receiving a
regular dose, patients can get
extra insulin before each
meal as needed.

Since the first experimen-
tal pumps were produced
about four years ago, the num-
ber using them has grows to
more than 6,000. Bnt the .
pump manufacturers are eye-
ing a much larger market.
There are estimated to be
about 4m diabetics whose lives
depend on daily injections of
insulin. The new Micromed
pump caused a -considerable
stir at the exhibition attached

U.S -52^00 "it Is at the top end
Of the market

• -Pacemaker says that the
batteries have to -be changed
once every 30 'days on aver-
age, the drag reservoir holds
a five to 10 day supply of
insu)m and a liquid crystal
display ^ shows what dose of
insulin is being supplied to
reduce the risk of patient
error.

Micromed. the 'miniature insulin pump.

to the American Diabetes
Association conference earlier
this month in San Francisco.

Dr "Julio Santiago, asso-
ciate professor , of paediatrics
at the Washington University
School of Medicine who
carried out the clinical trials
on the pump said : "It is the
smallest "most sophisticated
device currently available”

Dr Santiago was also
involved in the early stages

of design;. He -asked patients
already- on pumps what fea-
tures they wanted ' and. what
were the difficulties encoun-
tered. The aim was to mmia-
turise all the best aspects of
existing pumps in the U.S.
and Europe.

Thirteen patients have
aiteady.begun long-term trials
o*n the pomp which-*' will,
become.- commercially avail-
able . this autumn — at

Although drug companies
have been spending millions
on developing new kinds and
new sources of . -.insulin Dr
Santiago believes “ delivery is
the name of the game not the
spedes^of the beast”

.The hope is that by better
control of blood sugar' levels
pumps might be able to pre-
vent the serious heart and
kidney complications suffered
by diabetics. Such complica-
tions m.ike diabetes the third
most common cause of death
in the Western world.

The ultimate pump— -is

implanted •• device , . vrideh
responds automatically to
blood, sugar levels "H the
'pancreas does is befle*ed ! to
be stni some years off. But
research oh such a device is
already: -under .way at John
Hopkins.

Dr Robert. Sherwtn associ-
ate professor of medicine ad
tbs. Yale University SctoooLof
Medicine who gave a “state of
the art” lecture at th^ ADA
conference says he believes
that insulin' pomps .are- The'
wave of" the "future in ; the
treat m en t of jtiafteteS:

But there bad sim p ly, not
been 'Vhne to do long term
trials «n whether toe compH-
cations of diabetes could he
prevented. - ■ " . /

- “StwHes thus far under-
taken indicate that . you
cannot reverse established
diabetic retinal and renal
complications. The question
remains whether we ". can

retardJthe progression or pre-
vent the complications In tho
‘first place,”' Dr Sberwin «M-‘
- He' regarded to?" pnmp 'Utill .
as. an experinttetal device. It;
was particularly appropriate
In helping diabetic , children,
reach their full • grotto
potential and for pregnant
women where - blood sugar
levels had to be- s tri ct ly don-
trolled. ‘ -

Some problems wfth TWO*
were already apparent The
Centre for Disease Control in
Atlanta, is tovestigattngll-
deaths of ditoetics tvfio wms :
using insulin. pumps,

Because there is no salt-'
able comparison grtWQ» the
. GDC says - it does" .nWt know
whether this fs more-^ban. die.
expected number ofdjeaifcs.

But several of the 'll 'died
suddenly, -and - Dr. Stevmi
.'Tfatlsch -ol ' fte -CDC skid ,
those deaths may weB have
been due- to ^thire of Ailood
glucose control.

measuring

FIELD EEECEKQNIG5, E BCW
company based -ii East Stssex,
has’ brought" , out a, series; of
notelligeot” tiwte ...whidi vd«i.
veriph?sl<?J measurspaiteitito
digital -foray fio#©bie- tor iprw-

cessing by : computer; -:

The, fimts—Tield -calls .’than
“Digi tal - Date UiHis’V-presatt
the iiieasuifenifiirts ifL-a-forta
which can boused immediately.
All- the iagnal'eonditoobi&-a^
linearisation is carried out: by
the units ~toemselves. '

. JBacti unit is a rugged box
measuring about 15- cm by-7 ten.
- Up to 256 jetits .can .be linked
together -in; a single loop, and
the units -can be up. to A 000 ft
apart'

The units "are installed -'near
the ‘ point. irf -'meaSurenientr^
temperature, .pressure or flow,
for exampie^-and theTowlevel
analogue signals ;. converted to
digital form- in the unk . for
thmsmis&on bah. twin wire jocp
linking aRtheAtoits.

Whatmakesthe^
different from mt^t'shapie
digitisers Is Ifhe degree 'of inte-
lligence Which . can be - built in
because tto:un%s az^nuQropio-
cessor based. ^

Thus the Field 103, the basic
family amt; • can ‘ have built in
. correction "curves-. for platinum
.resistance toerinometera ‘ to
BS1904 and. for type J. K. T. S
and B 1 - tberinpoteodes" to BS
spedS.csrtten' T; ' -V ;: : -i -

The data -id- sampled, averaged
and then stoned in an output
buffer for. interrogation by a
computer or:. Field's own dock
and -logging,- controller^ ~ -
". If the user does 1 hot wish to
use these-. devices^ then the dala
is - reportekfi. atitom^ically' by
each unit'ini'iurii at a presort
period, enabling; - simple ‘-data
loggers to to oorKtructed- using
dumb VD tfe- or’ printers. : .

; "What' d oes it all cost? Aorord-
ibgto Mr B. infidd, managing
direotor . of - Field; Electronics:
,l If ;a -cust(mier' U6ed a znicro-
awuputef hke tfce jAppib,- he
could 'bmld-A 4gnificant k^ging
syhte in for £2,00&£3,00€."

- I-

•* ^ i

y* i

, i

* if-.

■)

’i.' *

... I

S’ J

; t

‘ ! i- s

1 i-

, r- £

. r (

The 10 V'coets £t80 a .board;
isewracb'Jiofcfe two' boards

the case

■£18.50. .Held; will gtaraUvthe
detaifa- onOffllS 'Z2836L

, :i \ I
, =
, 3* i
, 2-:

xc.

. .1 s

- - : ' -- '-.7. 1 -' '• ••■ -r ‘ . - J • j

| >i;,i

UILDING AND CIVIL ENGINEERING

Materials sector criticised

THE NEED for British building
'materials producers and manu-
facturers to take greater advan-
tage of export markets and to
^combai a rising tide of imported
'"building products is highlighted
in a new and hard-hitting re-
port prepared for the Building
. and Civil Engineering Economic
* Development Committees.

The report, still in draft form,
?. -has been compiled by Industrial
: -Market Research. It examines
“ six key building materials or
components where import pene-
. tration is thought to be un-
} acceptably high, or where export
-'opportunities have not been
realised.

' The six products examined
are: wooden doors and frames,
J. cladding and decking, kitchen
~:units. particleboard, ceramic
tiles and air conditioning units.

The document pulls few

- punches about previous failures
-by manufacturers to respond
adequate!'" lo overseas compel i-

— tion. Tt cites lack of innovation
in product design, inadequate
responses to changes in market-
ing and distribution techniques
and a need to improve product
ranges — at competitive prices
tn suit the requirement of in-

- - dividual markets.

I The repnrt says that UK
j manufacturers have room for
improvement at home and over-
’ seas when it comes to: “delivery

performance, the level of
defects and shortages, technical
support, availability of custom-
made products and the quality
of technical personnel.”

" UK manufacturers have
generally been reasonably
successful in selecting appro-
priate market sectors. How-
ever, they have usually adooted
a policy of following trends,
rather than initiating them, and
this has often led to competi-
tors developing new market
opportunities and gaining a fioot-
hold in the UK

"Historic examples include
the entry of Granges Essem into
aluminium cladding based on
the use of . lower specification
material, continental manufac-
turers’ penetration of the solid
wood kitchen unit market and
the dominance of Japanese, U.S.
and continental manufacturers
in heat pumps.”

The report says that not all
the criticisms apply to each in-
dividual sector. But it is gener-
ally concerned about toe quality
of product design: ” British
manufacturers are conservative
over toe use of new materials
and specifications and in their
assessment of user require-
ments.”

It suggests that producers
should: “ Use independent

designers to establish a distinc-
tive ‘British Look,’ possibly
collaborating to generate a
coherent British range aimed at

both UK and export markets.”

The report also suggests that
manufacturers should look to
make improvements in :

Market . research and after
sales services. There should be
closer liaison with customers.
Manufacturers should be pre-
pared to consider special prices
for -large customers like public
sector purchases.

• Better quality controls and
delivery times.

• Regular, reviews of product
ranges to ensure that these are
neither too narrow nor too
wide.

.• Greater awareness of --the
advantages available from differ-
ing methods of distribution.

• Improvements in the tech-
nical knowledge and perfor-
mance of British salesmen, and
in the quality of some product
literature.

The fact that building mat-
erial porducers are meeting a
third of the cost of producing
the reports indicates the will-
ingness of the industry to im-
prove its performance and to
close the gap between British
manufacturers and overseas
competitors.

ft is hoped to publish a final
draft of the report later this
year, following comments from
various building material trade
associations and material manu-
facturers.

ANDREW TAYLOR

— 6 city of the future 5

A DECREE from President
Mitterrand has launched a plan
by the French Government to
spend FFr lO.OOOra Ul.nOOm)
on a variety of ambitious de-
velopim-nt --ch ernes in the cen-
tre of Paris.

All the projects are part of
the President’s programme to
transform Paris into a “ city of

the future.” His Paris building
programme Is also being seen
as. an antidote to growing un-
employment in the capital as
well as a: serious attempt to up-
grade the city’s cultural and
scientific facilities. .

The six main projects are
to .be completed by 1989 in
time to celebrate the bicen-
tenary of toe French Revolu-
tion. Commercial offices are no .
longer to be built at La De-
fense. which has been at the
centre of most recent office
expansion. Instead, the French
Government plans to build an
international communications .
centre and two new ministries
—the Ministry of Planning and
Housing, and toe Ministry of
the Environment. These two
projects are described as sym-
bols of France’s aim to press
forward in the worlds of tech-
nology and communications. ■

the eastern sector of Paris, once
the slaughterhouses for the
city, will be redeveloped as a
20th century urban park around
a new museum of science and
technology and a major music
centre and music school.

‘Slim chance’ of

sustained recovery

HOPES of a sustained recovery
for the construction industry are
unlikely to be realised - according
to the Royal Institute pf British
Architects which has just pub-
lished its latest quarterly work-’
load survey.

The survey shows that new
commissions won by architects
during the first quarter fell by
3.7 per cent compared with toe
last quarter of 1981. The value
of work for which new commis-
sions were received - felt to
£l.S3bn during the first quarter
(£8S5m at constant 1975 prices)
compared with' £l.S6bn (£9 19m)
in the fourth quarter of. 1981.

The Institute says: “A plateau
has been reached in architects’
workloads which implies a very
slim chance of any significant
upturn in the construction in-
dustry as a whole.” •

one or two. doubts have been
expressed ' recently ' about
whether the pace of recovery
in new housing starts can be
maintained throughout the rest
of this year.

There is' as yet no sign that
the spring upsurge in new
housebuilding activity has
slackened, although talk' of
recovery must be set against
the record low level of hearing
starts made ' during the early
part of 198L •

Gleeson wins £35m

Nigerian water scheme

Improvement

Upsurge

The architects are particu-
larly concerned that the recent
sharp upsurge in new house-
building starts made in the pub-
lic and private sector may be
about to tail-off.

The Institute said that the
level of new commissions won
by architects from private
housebuilders fell by 8 per cent
between toe fourth quarter of
last year and the first quarter of
1982. Commissions won for pub-
lic sector housebuilding how-
ever were up by more, than 27
per cent and were at their
highest ‘ level since the second

On the site of the Bastille a
new Opera House is to be
built, which wUl tbe “ modern
and popular.” The vast expanse
of toe ares of La Villette is

Three thousand civil ser-
vants from the MizhstTy of
Finance are to be turned out
of the Louvre so that the whole
building can be - restored as a
museum. The .Polytechnique.
France’s school for top officials,
has moved from its building in
Paris which will now be re-
habilitated as a Ministry of
Research with . neighbouring
institutes devoted to toe pro-
motion of industry and the de-
velopment of small firms. _
There are to be major inter-
national architectural competi-
tions for aii toe new schemes.
A 21-man international jury
has been established and toe
first 'competition for the urban
park at La Villette is under,
way with entries from over SO
countries.

COUN AMBRY

quarter of 1980.

The architects appear to be
overstating their case when
they say that "the picture for
housing is bleak.” Nonetheless,

New order figures published
by the Environment Depart-
ment last week ' reflect toe
improvement that ( has been
made from last year’s low base.
Public -sector . new houring
orders in tbe three months to
end April were 47 per cent
higher than in the same three
months last yey — private sector
starts were 87 per cent higher.

Beyond the housing sector,
there were few encouraging
sign*, for toe construction
industry. Private industrial
orders to thf end of April were
10 per cent lower than in the
previous three-month, period
and 2 per cent lower than in
the same quarter of 1981.
Private commercial orders were
1 per cent higher than in ;toe
previous three months but 4 per
cent lower than a year ago.

The latest figures from . the
Environment Department, to-
gether with toe findings from
the architects, workload survey,
support the view that there is
likely to be only a- "slight
increase in construction. output
this y«ar. ‘

GLEESON CIVIL ENGINEER-
ING has been awarded a £35.15m
contract by • toe -Plateau State -
Government of toe. Federal Re-
public of Nigeria, for the con-
struction of dams, water ".supply
and treatment works at Shendam
and Nasarawa. BALFOUR
BEATTY ENGINEERING, as
toe managing contractor, will
administer toe contract on . be-
half erf the Plateau State, and
the project is being financed
out of a £U7m" JLC.GJ). .sup-
ported loan and .’Euro" Currency
Loan arranged by Midland Bank
International " for toe Plateau
State', and is guaranteed by the.
Federal “ Republic " of Nigeria.
Work is-due to commence hnxne-
toately and - will’ extend; over '
2j years.

Gleeson Civil Eng i nee rin g has
also received contracts, in toe
UK totaHtag £5.4flm. . -- " /

-■ -. •

HIGGS AND ' HILL' has bran
awarded contracts in. excess^# .
£2m for fitting three prestige
bank premises ui Cairo. Tbe first
contract is for the Misr-Exterior
Bank and. involves fitting-out. two
levels of the recently completed 1 '
south office block section of the
Cairo Plaza development cur- ■
rentiy being constructed by
Higgs aad.Hilt. The second is-for
Hong Kcmig Egyptian- Bank and '
involves fitting two’ floors in toe
new Abon El Fida building ■on
the island of Zamalek. The pre-
mises will be used as -both head -
office an an operating, branch for.
toe bank. The third is for tbe.
Chase National Bank (Egypt) '
SAE requiring tbe fitting' of six'
floors of- toe 'Nile Tower building-'.-.
In Giza Street to provide bead- •
quartets for the bank's, opera--

tions in Egypt.

★ — . - -•«»

~A.~ $S5m -(£16;5m) -contract: for -
the construction of the^ Sheraton/
Hotel, -,- Colombo;' - been .
awarded to VOLANI INTER-
NATIONAL an Italian firm based
in Switzerland. A spokesman for.
toe, project's promoters; " the

Travel . Corporation of -India,
Hotels and Resorts raid toe con-
tractors, promoters- and a
financial . teapi.v will meet in
Colorqbo next month to negotiate
loan financing and guarantees
from the Bank of ;Ceylon and
discuss other matters with; the
State Urban ' Development
Authority which .has leased the
land facing, .'toe. .Galle Face
Esplanade. Construction of the
375-room' hotel -will begin, in
August A share issue is being
floated to raise funds locally.

STENT FOUNDATIONS has
new contracts totalling £3}m in
toe Middle East Stent has a con-
tract for toe -Bahrain pelletising .
: miH being constructed for lire ;
Arto Iron, and Steel corporation -
4>y Kobe- Steel of Japan and -A3
Jazira Construction Company of
Bahrain. The contract consists of
driven and bored piles under the
main' plant- areas and ground im-
provement elsewhere. The
ground • improvement will be
Carried oat by Stent ■Solcompact .
joint venture • using dynamic
compaction- - techniques. - Otoer
work includes a joint venture
with S:I.F." Badly of France for
a. diaphragm ’ wall at Mwssafah ■
Interchange >at~A&m Dhabi. The
main' constructor; .for the inter-
change is- Joanbou and Para-
skevaides and the engineers are
De Law Cather International- i-.

The versatile
buUdinssystem

: r. ;

■. !i'i ;
a H-, :

FbrOfi k^foctorie^

'Warehouses

CSENDON CCWGKEIS CUMEJWY UKUSS
XcsV.Gnnaeii.AylMhmK Bacta. HPISfB
wtengttaNtaPHbamm.-.

- Trt.OPfJ»IWIgMBI - •

;?k ;

i is - - ;

V - :

• H-.

* -y ;

1!.

UK CONTRACTS

TROLLOPE & COLLS have:
.been awarded a £10m contract
by ' Heron Property Corp to
build commercial offices mid a
headquarters building- for" toe-
Royal Society of Medicine at
Wimprie Street 'Hie seheme
combines "about 58,000 6q ft of.
lettable "offiefe - space 1 with- the
headquarters . ' for the' Ttoyal
Society of Medicine whose odst-
fedg premises- are -next door.' -
/ Hie new' facilities . .for .the
-Royal Society of .Medicine will
be situated at basement ground
and first floor- levels and com*

THE FRIGHTENING toll of
human misery caused by
accidents with glass should
start to fall from 1 the end of
this month, A new "British
Standard Code of / Building
Practice comes into force then
which specifies the- rmzutmmi
standard of. glaring material
that, .can be " used in. the
principal area's of risk. ;

When ordinary glass is
kicked, fallen against or run
into, it Can maim or disfigure
or even kill, because it. breaks
into jagged, sword-like pieces
with razor-sharp edges. Unfor-
tunately, it is usually children
who are the victims and. 7,000
were injured last year. •

But tempered safety glass is
about five times as strong as
ordinary glass so . it is unlikely

REDUCING THE RISKS

FROM BREAKING GLASS

to break even , from the impact
of a running boy- Even more
important, - if it does break It
will collapse into thousands of
tiny round pieces with. doRed
edges. \ .

The new British .Standard:
Code covers five main risk areas
where there is. most risk of -
accidents. - These include glass
panels -nOar toe floor, stairfoot'
doors with.large glass panerand
bath or shower screens.. - The
Standard sqys what safety glass
or thickness of ordinary glass
or other glazing material; should
be used. ' i

Dottlton Tempered GIas6 a
leading manufacturer of! safety,
glass, says the.- new. . British
Standard Code of Practice ;wiH'
work snnilarly to. the-: Highway
Code. No one can' moke’ you. do
.what it says— but" if there's an
accident you’d better - he . ready
with ’a jolly" good' reason^ for
havifig ignored it - :

In few,' tiie: verifier Wfil’/bfe
hdd :.responstole - .toti 'a n
accident -involving - - glass
installed installed after .June
1982: H you use a piece of the
wrong: glass in a risk area, then
: the “ epteafier.'’ coaid be you.

Ttfhete." a.- dealer’ supplies tofe
or a tradesman -rec te nanends or
"instete it, . he Could W farid
liable for any injury touted by
. ate-brwlage. ■ — t

/. To; ^ay; it .ahwfluteiy safe,
/insist on tempered safety gjass:
nternffactured to British
.5tp?da^'; 6206. Clara.. ;A^: .

;Afl safety ^ass manufactured
-to. tins standard is.simpjied. wito-
-. a smalt ^ernnsanen t brand fearit
; showing; the . standard, manb er
and: i classifications Teffl. J the

SuppEer glass

“ is^for *" ' ' '

and let hini chdck' it with
the-, new/ guide : that' : Dbuiton
. Tempered Glass have made
•available .--to ...glass, Shops,
. builders and home improvement
centr»T..

prise reception • areas, .meeting
rooms, : rwtaurant /and ; bar,
offices and ' 38 bed- sitting rooms
for visitors and will be . linked
to the present : accommodation.
The remaining tour /floors will
contain open -plan office space,
fully air-conditioned. 1 A separate
groiind' floor . entrance ■ serviced,
by high"" weed^lifts. VrtH provide
access - and -car" parking will he
mcluded aVbasenwoitfeveL ‘

JT/ F. FINNECAN, S5efi5eM. has
won. contracts jtotaflfeg neariy
£5m, incluffi^. an 'order, worth
£l.lm, for -73. houses , at Gdd-
. raan<*e9ter S7 r HiditB,. ■ from tie
Muir Group Housing Association,
•industrial ..and;. .commercial con--
tracts include seven tingle-storey
.factory ’ units at : Oheshmiti Herts,
for Broxbouriie Borough' Council,
worth some '£1.7m, a. £500,000
retail, .warehouse/ for: Turret
Developments, it Chesterfield to
be occupied by- W;. H. "Smith
(DIA), and a' wet sand storage
boiiding at a glassworks in
Knottingley- • fmr -. Fairotough
Projects.. . . — .

‘ - ‘ . '
Contracts >worth overJSm Includ-
ing .a new office and residential .
complex in; London, and a new
school in- South Wales; hive been
awarded to - FAIRCLOUGH
BUILDING; A £4m -complex,
with floor offices and an' right-
storey residen alibolJcETAINO
storey ‘residential block, will be
built in Baddhgham palace
Road. Work has started 'on a 94-
week contract- for the UK
Temperance "and General ^KrdviJ
dent Institution... A £717,000
London _ contract / -will, provide
banqueting facilities, offices: and
residential accommodation in. -St-
Marjf-flt-Hill, EC4. The facade of
a listed building will be ttetaftifid
to '.the project: for . joint . -clients
the Waterman and Lightermen
of the" River . Thames ' hnd
Guardian. Assurance. ..Work -has
started. r.-\ r ' '

* *'• '*' '. ; v " ir - " ' V

RATTEE- AND . - KETT,. 1 Gam*
bridge-based member 1 : of the
Mowlem Group; has bees
awarded contracts • worth •'Over •
Sm. Amtag them is a':£lfl5ni
15-month oonaract 'te " «mstruct
a aekr sports c^rtte ■ fia :Kfegs
Lynn, Norfohc -Th§^brito^aced,
cohere^- frafixed strnctur^^WiH
include squash . courts and a
four-lane Indoor bowls ’■ -area,
tegemto J wrto ^bms ahd restanrt
ant £acpies.-.‘'-lT»t.jdiMt; f te
Chimegfede. . Another - it. 1 :- a
S50;000' scheme :telindl(f aritonra
hnproyemerrt centee./or
base on the rite’ an existing
garage, in High Read* Seven
Kings* near UfoisL ;Tbe- teftrlS. ;
which starts on July Si, includes:
taproyements and alteratiwa ;te ;
toe premises; ancffl^ng^ooL ".-\.

v h-. -

•.iV,

ud Markets

CURRENCIES: MONEY and GOLD

■'Finaii&ai \umes mwn«gF:

MONEY MARKETS

Focus on

Attention remained focused
on Eurodollar interest rates and
the actions of the Federal
Pcserve Bank in New York last
.week, intervention by the U S.
authorities gave no indication
of easier monetary policy, as
the overnight Federal funds
rate moved up to 34j per cent
from t4i- per cent.

Market estimates of last
week's M-l money supply,
pointed towards an increase of
Sltbn. while fears lingered of
possibly tighter credit conditions
if the Federal Reserve considers
the July money supply bulge
excessive.

Another matter of some con-
cern was the forthcoming
auction of S5bn of U.S. Treasury
notes at a time when the
market is very’ uneasy about the
fizp of the Federal budget
deficit.

An auction of $4bn four-year
bonds takes place tomorrow, and
$4bn seven-year bonds on Thurs-
day, and the market's reaction
to these issues could prove a key
factor in determining whether
the U.S. Treasury can attract
long-term investment at a rate .
well over double the current
level of inflation.

Day-to-day credit conditions
are expected to remain tight for
the next few days during the
run up to the end of the
quarter, and there also seems
hule prospect of a sharp fall in
Eurodollar rates. These con-
tinued to advance fast week,
pulling up most other Euro-
currency rates, with the excep-
tion of Euroguilder and French
franc rates.

Three-month Eurosterling is
now about i percentage point
higher than at the time of the

last cut in clearing bank base
rates, on June 8. but the.
important seven-day rate has
fallen slightly over the same
period, and the same also
applies for domestic rates, which
should help keep any immediate
upward pressure off base rates.

■Nervousness seemed- . -to
increase as the week, progressed

WEEKLY CHANGE IN WORLD INTEREST RATES

BANK OF ENGLAND TREASURY BILL TENDER

• June 25 I June X8 !

Bills on of for- ... £100m £I0Qm .Top accented
Total or rate of

; Juno as i June 18

-|— 1

12.2756$ ! 18.3636%

LONDON

Base rate*

7 day Interbank
3 mth Interbank
Treasury Bill Tender
Band l Bin*

Band 2 BUM
Band 3 Bills
S Mtti. Treasury Bills
1 Mth. Bank BUM -
3 Mth. Bank BUM

TOfcYO

One month BUM
Three month BilM

BRUSSELS
One month
Three month

AMSTERDAM
One month
Three month

121 #

i-avir

w * -m

12 5b

isre#-i8f

7.54376

7.28125

Unoh'd
+ k

+&B71
Unch’d
Hash'd
+ Tfc'
+*
a

NEW YORK .

Prime rates- '
Federal funds'

3 mth Treasury Blue
6 Mth. Treasury BiJM

3 Mth. CD
FRANKFURT .
Lombard

One Mth. Interbank
Three month

PARIS

intervention Rate
1 Mth: Interbank
Three month • -

i June 25 change

1161# Unoh'd
14V15 +V
1 15 .04 +0.47

IlSJQ + 0,24
16J50 +0.40

Urrch'd

+ 0.10

+0J2S

| MILAN

+re- j One month
Unoh d. Three month

DUBLIN'

— iV > One month

-rfe-- (Three month

>Unsh' 4
tUneh 'd

Ths fixing rates (June 11) are the arith-
metical mesne, rounded to the newest
one-shttMirth. of ths bid sod offered
rates for $10m quoted by the market to
five reference banks at It am each
working day. The banks are National
Westminster Bank, Bank of Tokyo.
Deutsche Bank. Ban qua National de
Peris and Morgan Guaranty; Trust.

Local authorities and finance houses seven's notice, others seven days fixed. Long -term 4 oort authority mortgage
rates, nomm-ahy three years 13*» oar cent® four year 14 per cent: five years 14*» par cent. « Bank bid rates m table
are buying rates lor prtma paper. Buying rate for four-mo nth bank biUa 12 , a-\2h par cant: (our month trade btda
13 1 * per cent.

AppraxmWB aelUng rate lor wie-moirth Treasury biU» 12\i par cent: 'two mouths. 12V- 12^ per cent; three months
12^4-127}! per cent Approximate sefimg rate for one-month, bank brUa .12?* par cent: two months 12% per cent and three
months 12V par cent: one-month- trade bttts J3H* per oanG nvo months 13- per cent: three months 12% par cant

Finance House Base Rotes (pirtrhshed by the Finance Houses ^Association) 14 pOr cent from Juno 1. 1382. London
and Scottish Gleaning Bank Rates for (ending T2 1 * per cant - London Ofaarmg Bank Deposit Raisa for sums at seven
days' notice IP* pw cent. 'Treasury BjHs: Avenge tender rasas of discount 122696 par cant. Certifies taa of Tax Daposm ,
(Series 6) 13 per cent from June 8. Dapowta withdrawn- for cash Wj portent, .

EURO-CURRENCY INTEREST RATES (Market closing Rates)

Canadian J Dutch
Dollar ! Guilder

Swiss

Franc

D-mark

French

Franc

2l<4ifl

a via

55s 54*
Wr-BA

| 6V6T9

1 65*.-67a

87 B 9
8r a -fl
8-BrV.
Big 9U
9 t 4~9A-
»rV9*

151x1598

15T B .15fi8

151J-16

16S4-1734

lBVISSs

18H-105*

SUR imkad deposits: one-month J3S-13 1 * per cant: three months 13 n ji-74 1 M par cant atx months per cent; one-year 13V 141* per cent.

ECU finked deposits: ona-monih 12V124> per cant; three mon-tit per cent: not month* 13*n-13n* par c«nc one -year T5V-13 u w per cant.

Asian S (dos-nfl rales in Singapore): ana-month 15V15 , i per cent; three months 16*jk-16“i* percent: six months 16 u u>16 u it par cent; cne-ycar 16^.19*. per
cant. Long-term Eurodollar two years 15V-16** par cent: throo years IIFa-lfPi pet cent: four years UPr-IVs per cent: live years. 15V164 per cent: nominal dosing,
lataa. Short-term rate: are cat) for U.S. Cottars. Canadian dollars end Japanese yen: others two days* notice.

The foUowMig rates were quoted for London dollar certificates of dopes re one-month 15.30-15.40 per cant: three-months- 15.90-16.00 per cant: six months
16.15-16-25 per cent; ono-yoar 16.15-16.25 per cbtiL

CURRENCIES AND GOLD

$ stays strong

THE DOLLAR SPOT AND FORWARD

The -dollar continued to
advance as the upward pressure
built up nn Eurodollar interest
rates last week. Six-month Euro-
dollars rose to 1612 per cent
from 16 per cent, after touching
17 per cent at one time.

After a very firm start to the
week, with the U.S. currency
rising to record levels against
several European units, it
suffered from a bout of profit-
taking and periods of easier
Eurodollar rates. When
European centres closed on
Thuffiday demand for the dollar
seemed to increase, however, and
the firm trend continued as any
hopes of lower U.S. interest rates
tended to fade-

Thc dollar rose to an all-time
peak of FFr 6.9130 against the
French franc nn Friday, and
.finished at FFr 6.SS50. a record
closing level, compared with
FFr 6.S250 at the end of the
previous week. Hie U.S. -currency
also rose to an historical high
against the lira at the Milan
fixing on Friday, improving to
U. 401.55, from L1.3S7.55 on

Thursday.

It rose to the highest level
since August last year against
the D-mark, closing at DM 2.4S30
compared with DM 2.46 on the
previous Friday. On the other
hand a continuation of the up-

GOLD MARKETS

ward trend in Swiss interest
rates kept the Swiss franc steady
and the dollar eased to
SwFr 2.1170 from SwFr 2.12.

Against the Japanese yen. the
dollar was at its highest level
since April I960, rising to
Y257.40 from Y255.10.

The dollar's trade-weighted
index oir Bank of England
figures, rose to 121.6 from 120-5.

.Sterling's index was slightly
firmer at 91.3, compared with
91.2. The pound touched its
lowest level since July 1977
against the dollar, ending the
week at 61.7250 against 51.7395.
Sterling showed a firmer trend
against most other major
currencies, however, rising to
DM 4.2S50 from DM 4.28; to
FFr 11 .5750 from FFr 11.87; but
falling to SwFr 3.6550 from
SwFr 3.6S75: and improving to
Y444.25 From Y444.

Within the EMS the French
franc was quite firm, taking the
upward pressure off Paris in-
terest rates, while the D-mark
remained the weakest member of
the system.

Gold fell to its lowest level
for nearly three years on Mon-
day. finishing at $296, as a
reflection of the very strong level
of the dollar. It ended the week
at $305, fall of just $2$.

June 25 spread Close Oua month

UKf 1 .7160-1 .7310 1 .7246-1.7356 0.40-OJQo dla~

Iralandt 1.3795-1.3850 1.3835-1.3890 0.50-0. 40c pm
Canada . 1.2845-1-2880 1.2860-1.2880 0. 15-0. We dis
Nothlnd. 2.7335- 2-7540 2. 7395-2. 7425 1.68-1. 58c pm
Belgium 47.42-47.51 . 47.44-47.48 1e pm-2dls

Denmark 3.588V8.6200 8^9504.8000 1 JO-1.2 Sorepflt
W. Gar. 2.4780-2-4960 2^825-2.4835 1,43-1 -38pf pm
Portugal 83.75-8^60 84.25-84.60 30-130c dis

Spam 112,38-112.65 112.35-11Z.45 75.85c dia

Italy 1.3MVI.403 1,398-1,239 5V6 lire dla

% Three %

p.a. • months p.a.

-3.13 1.5Z-1.62dls -3-64
3 JO 1.15-1.05 pm 3.18
— 1J4 0.3&-0jt2dls -1&'
7.11 5.13-5.03 pm 7.39
-0.13 5-9 dls -0.59
1.SZ 2.60-2.W pm 1.09
6.78 4-58-4.53 pm 7 3a
-11.38 70-370 dls -10.43
-8.53 130-220 d» -7.28
-4.81 17-18** dla -5.08

62970-8 25 6-29BO-6.303O Vore pm-0.15 di» 0n9-0.35pm-0.05d 0.03

Franca 6.8700-6.9200 6J825-6.8875 C.10-0.20c dm

Sweden 6.1400-6.1900 6.17500.1800 fWr-O.ZOoro di

Japan 25625-258.00 25735-257.45 1J2-1.74ypm 8.30 BJS-5.7S pm

Austria 17 J2V17.56** 17 53V17 -54** TMOVjru pm 7.19 36V43>a pm

Swltz. 2.1150-2.1280 2.1165-2.1175 1.80-1 .71c pm 9.96 6.50-5.42 pm 1

t UK and Ireland are quoted in U.5. currency. Forward premiums and
discounts apply to tha U.S. dollar and not to ths individual currency.

O.lO-fLZOc dm —0.26 1.10-1 JOdis -0.72

par-O.ZQore di» -0.19 1.804.40 pm 0.38

1 .82-1 -74y pm 8.30 5 .86-5.75 pm 9.01

TMOVjropm 7.19 36V33*zpm 7.39

1.80-1 .71c pm 936 6.50-5.42 pm 10.32

THE POUND SPOT AND FORWARD

Day**

June 25 spread

% Three
p.a. months

U.S:

Canada

Notblnrf.

Belgium

Danmark

Ireland

W Gar.

Portugal

Soain

Kafir

Norway

Franc*

Sweden

Japan

Austria

5wiu.

I. 7160-1.7310 1.7245-1.7255 O.OO-O.BOc dla -3.13 1.52-1.62dis •

a 2.2010-2.2200 2-Z1 75- 2^185 0.75-0 JSc dts -4.33 2.60-2-70dls -

tf. 4.71*1-4-75 4.72-4.73 IVIVcpm 4.13 4V-4V pm

m 81.SL81.3S 81 JO-81 JO 15-2SC dla -2.93 72-82 die

rk 14.78-14J4 14.77-14.78 *«-l\aredia -1.01 BL-IOdls •

I 1.2410-1.2485 1 J42D-1 J43D 0.67-0.79p dia -7.05 2.O7-2J0di9 -

r. 4.27H-4 4K 4.28-4^9 1*a-1'iPf pm 3.8S 4>«-3k pm

al 144,50-145.75 145.25-145.75 80-265C dim -14.23 230-675dla -

183.25-194-25 194.00-194.20 165- 200c dr* -1128 51Q-570di« -

2.409.Z4W Z4M ’rZAISh 14-17 lira dia -7.69 MVM’jtfia -

y 10J4-10J8 10J6-TDJ7 2V-3*iOre dia -2.65 9-1QH dla -

II. 92-11.91 11-88-1188 2*r4»:C dis • -3.64 12V-14Wls ■

n 10-55-10.68 10.65-10,66 2V3V.ro da i -3.24 W-7A dis -

440-446 443\-444\ 2.15-1 R5y pm 540 6.15-5 J5 pm

i 30.12-30.32 30.22-30.27 13-IQgro pm 4.56 36-29 pm

3.64-3.68 3.65-3.68 2V1 T «e pm 8.98 6W f i pm

Belgian rate is fnr convent bln francs Financial franc B8 95-89 05.
Six-mcnUi forward dollar 3.10-3. 20c dis, 12-month 5.10-5 30c dm.

1.7245-1.7255

2^175-22185

4.72-4.73

81 JO-SI JO

14.77-14.78

1.2420-1-2430

4.ZB-4J9

145^-148.75

194.00-194.20

a4MVZr418>*

1046-10 J7

1148-1148

10.05-10,66

4435-444V

30.22-30.27

3.65-3.66

FORWARD RATES AGAINST STERLING

Spot

Dollar — 1.7250

D-Mark - 4.28S0

French Frans 11.8700

Swiss Franc 3.6550

Japanass Yen 44425

1 month 3 month 6 month 12 month

Gold Bullion (lino ounce)

Close S 504 Is -30518 /El 7613-177) ,3307-308 f£1761j-1771

Opening _.... S302ij -30312 i£176.l76t S ) lF310iz-311Ij (£179-1791:)

Morning fixing... S3D4 i£ 176 w 539 i IF 309.7S (E17B.45B,

Afternoon fixing. . S3 05.50 fCl76.fti8i Is3ina& u-i7s.i95i

EMS EUROPEAN CURRENCY UNIT RATES

Gold Coins June 25

Kruqrnd S335!:-3161 e
13 Krug S162U163U i£94)a-94&i)
1(4 Krug 582^-65^, i£46L4a^il
MO Krug 5335j4S45, «£19i r -20i*l

Mapleloaf F315l«-316ti (£lB3ir-184)
New Sov S73 1* 73^ i£42l;-4QS«)

OTHER CURRENCIES

;Klng Sov
.Victoria Sov
French 2 Da
,50 poos Mex.
100 Cor. Axist
620 Eagles

(£178.525)

8Bli:-B3 l£ 47-47W1

681 la-83 |£47-47isi

8B71« 70U i£39U-40:,i
8375+478 (£21Bi-21«)
S29S-301i I£1732-175i)
8363-368 (£211-813?)

Belgian Franc
Danish Krona
Cientian D-Mark
French Franc ...
Dutch Guilder ...

Irish Punt

Italian Lira

8.23400

243379

641387

2.57971

0.691011

1350-27

Currency
•mounts
■gainst ECU
June 25

8.15925
248450

6.55 540
2.60687
0.687103
T329.59

change

from

central

% change

adjusted for Divergonce
divergence limit V.

±1 0888
±1.3940
ttil.5004
±1.6691
±4.13W

Changes are for ECU. therefore positive Change denotes a
weak currency. Adiustmcni calculated by Financial Timor,.

CURRENCY MOVEMENTS CURRENCY RATES

IMsSUZZ

however, and by Friday there
were signs that the discount
houses may be keen to sell long
dated bills, to the .Bank of Eng-
land. Official dealing rates for
-band 3 and band 4 bills rose by
up to tV per cent when the
authorities intervened to pro-
vide assistance for the -London
money market

Ttf.Cw.T'*

Arkwright Mmgmqnt

Pmonage GdnSn Mandmtcr 0(04342332
AifcwWanJm22,-.ll013 1674 — J 44

T. Far Can ,
T.TedC*G

trxkm

|7 ^^"1 } -

(-"i.i

fi r - r - r ‘>i.7 r ‘*rMd

1: .iiK

Iciaf, ?™

Ej&m

. , MM t j

- HPlO'uaTr

TjB"IiL'LJC

Hpf

KEC2V6EU.

±=m

ss^

MMhANMtol

SMMMfw.

!N»»**yTr«

I* 1

4MT ThMb tW ffV

fS.?"? ^ Aatenr, Mads, SPtBIK.

026*

Pound Stirling | U& Dollar I Doutscham’kl Japanese Yen; French Franoj Swiss Franc 'Dutch Guild'! Kalian Lira {Canada DallorBolglan Franc

Pound Sterling
U.S. Dollar

Deutsche mark
Japanese yen l.ooo

French Franc 10
Swiss Pro nc

Dutch Guilder
Italian Lira 1,000

Canadian Dollar
Belgian Franc 100

OMOOfiOT

MOTES-

FT SHARE INFORMATION SERVICE

FOOD, GROCE fttES^eaat?

1LSA

Bib

^Vl

v n

F.MyAg-N.

(JF.My.AnN.

MaJiLSe.Be.

CHEMICALS, PLASTICS — Cont

“¥ST I -.sMt I pita I 1 ? I 2t IrwIKIv

Yorks Chems

SJwetaTliJ).

taiielOp—

tarDvjfe

F.Mt.AilW.

MaJu5e.De.

13.JT3

13321 13.44
9.96 1 2134
33.48 1 1332
12-75
13.47

tth

BEERS, WINES AND SPIRITS

. Sept. Mar4flllW-‘-jw«s_.| 95^1 M S3 | 1!

23
7 2

2.9
2-0
51
23
9.7

9.6

8.9
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6.7
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15M 15N

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,j®Ip 3695 C >2

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May Ho*

BrinlCteadUp.

BrtLAMi*n5qL

Jai- Apr
Mar., Sept

Frit.

SJ |£l
4.9 | Feb.
153 I Jan.
* Jan

6.7,

1L0| Jan.
95 Oct-
65 ! Apr.
Jai
Feh;
Mar.
Oct
Dec.

I Jan
Fefc
Jan
May
W
June

to: W-

flnr. OcL

SepL tor

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106 I 17.51 0.72
MRS

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Oct to

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115. ImtetriesH-

•f — ■v. i y s *,e

Call to Europe on U.S. links

BY JOHN WYLES IN BRUSSELS

EEC heads of government will
be urged to call for a new
transatlantic dialogue at the
Community summit opening in
Brussels today. The plea will
be made because of growing
fears for the future of Europe’s
political and commercial rela-
tions with the U.S.

Ideas for a new “forum”
possibly based on regular top-
level political contacts between
the Community and Washington,
will be pressed hard by the Bel-
gian Government. As president

of the EEC’s Council of Mini-
sters. Belgium will play host to
the summit meeting.

The resignation of Mr Alex-
ander Haig makes it even more
imperative, the Belgians con-
tend. to take steps to prevent a
major political crisis from deve-
loping out of the present
economic disagreements be-
tween the EEC and the U.S.

Mr Haig was viewed in Com-
munity capitals as a staunch
advocate of European interests
in Washington. There are now
widespread fears that his suc-
cessor. Mr George Shultz, will
line up with those advisers of

President Reagan who have
been successfully advoctating a
tough line with Europe. They
wish to prevent the supply of
U.S.-licensed parts for the
Soviet gas pipeline to Western
Europe and to damp down EEC
steel exports to the U.S. Wash-
ington’s moves on both issues
have this month threatened to
aggravate e artier disputes on
agriculture, export credits and
textiles.

,Mr WiMried Martens.
Belgium's Prime Minister, and
Mr Leo Tindemans, the Foreign
-Minister, look likely to receive.
a polite but sceptical reception
when they outline their ideas
to the summit. Few govern-
ments believe that current
problems stem from lack of con-
tacts with- the U.S. Instead,
they; will want to concentrate
on pressing for successful nego-
tiated settlements with. Wash-
ington.

Publicly, they are unlikely to
risk doing any further damage
to the political climate by
denouncing U.S policies. They
are expected, instead, to en-
dorse - firmly the statement

issued by EEC foreign mini-
sters last week- which amounted
to a crisp declaration that the
imposition by the . U.S. on
June 11 of -countervailing
duties on steel imports from
Europe was politically' wrong
headed. .

The EEC statement also
accused the U.S. of breaching
the principles of International
law . in trying to prevent the
manufacture in Europe- of parts
for. the Soviet gas pipeline.

The second major issue to be
dealt with is tile crisis in the 1
Lebanon and its impact on the
search for a Middle East peace
settlement Again, whatever the
summit has to say will be prin-
cipally addressed to the U.S. in
an effort to secure an Israeli
pull-back from Beirut and, in
the longer term, a more "real-
istic” approach to negotiating
Palestinian autonomy.

Although France, the UK and
Greece, have been in favour of
mounting some form of sanc-
tions against Israel, opposition
from West Germany and Hol-
land has ruled tins out. But

the summit will emphasise that
there is no softening of the
EEC’s view that -the Palestine
Liberation Organisation cannot
be eliminated politically or
militarily, and that Israel must
recognise the Palestinians’ right
to self-determination in return
for Arab recognition of Israel
.There may wen be some dis-
cussion ■ on whether Europe
should be -ready in take part
in a multinational peace-keeping
force in the Lebanon aimed at
underpinning a negotiated with-
drawal of Israeli forces and the
establishment of a 1 genuinely
independent Lebanon.

Heads of goverment will re-
turn to Community preoccupa-
tions over' dinner this evening
when they will discuss the future
development of the EEC in the
light of Spanish and Portuguese
membership. This will be the
first opportunity for President
Mitterrand to explain- his re-
marks in Madrid last week
which have been widely seen
as calling for a delay in nego-
tiating accession with Madrid
and Lisbon.

Ulster post
for Tate &
Lyle chief

By Jeremy Stone

MR SAXON TATE, a vice-
chairman of Tate and Lyle, has
been appointed chief execu-
tive of Northern Ireland's new
Industrial Development Board
«DB).

The announcement will be
made today by Mr James
Prior. Secretary of State for
Northern Ireland. Mr Tate is
expected to take up his ap-
pointment in August.

After years of argument,
the Government announced In
August 19SI that it was set-
ting up the development
board, to provide “ one-stop ”
shopping for companies seek-
ing to invest in Northern Ire-
land. Hitherto, they have had
to deal with the Department
of Commerce, responsible for
attracting investment to
Northern Ireland, and the
Northern Ireland Develop-
ment Agency, which assist the
-establishment and expansion
of enterprises in the province.
The IDB will combine these
functions.

Although Sir Desmond
Lo rimer was designated chair-
man in March, and five of the
12 board members were ap-
pointed at the same time,
there was some difficulty in
finding a suitable chief execu-
tive after the first-choice can-
didate declined. Since the
IDB is due to begin operating
by September, the need to
make an appointment had
taken on a degree of urgency.

Sir Desmond said yesterday
that the hoard was “absolu-
tely delighted” that it had
been able to attract a candi-
date of such calibre, and to
get started on its task of
bringing fresh employment lo
Northern Ireland.

“ As the Secretary of State
will be making an announce-
ment tomorrow, it would be
unwise for me to comment
one way or the other,” Mr
Tate said yesterday.

Mr Tate has worked for his
family firm of Tate & Lyle
■since 2952, becoming a direc-
tor in 1956 when he was 25.
Between 1965 and 1972 be
was chief executive of Tate
& Lyle’s Canadian subsidiary,
Redpath Industries. He then
chaired the group's executive
committee until moving up to
the position of managing
director in 1978.

In July 1980 he was re-
placed as managing director
of Tate & Lyle by Mr Neil
Shaw. It was said at the time
that Mr Shaw was expected
to impose a “crisper” man-
agement style on the group.

Educated at Eton and
Christ Church, Oxford, Mr
Tate is the heir to a
baronetcy.

Shultz unlikely to change
American foreign policy

BY REGINALD DALE US. EDITOR IN WASHINGTON

WHITE HOUSE officials yester-
day stressed tbat ' the sudden
nomination of Mr George Shultz
to replace Mr Alexander Haig
as U.S. Secretary of State would
make no change to the overall
direction of American foreign
policy. '

Mr Shultz had talks .with
President Ronald Reagan at
Camp David at the weekend but
would- say little about his
approach to foreign affairs in
advance oE his Senate confirma-
tion hearings, which are expec-
ted to be held in the week
starting July 12.

A number of Senators have
made dear already their inten-
tion to Question Mr Shuite
closely on bis attitudes towards
Israel — particularly in the light
nf has role as president of the
California-based Bechtel . Engi-
neering and Construction Co.,
which has strong links with
Arab countries. ■

It is expected in Washington,
however, that his appointment
will be confirmed swiftly,
despite fears among conserva-
tives that he is even more
“moderate” by Reaganite
standards than Mr Haig.

The Middle East remains,
nevertheless, the major policy
area in which the change of
Secretary of State could lead to
a shift in U.S. attitudes. One of
the many reasons for Mr Haig’s
abrupt departure on Friday was
his continuing insistence —

against the majority of the
Cabinet— -that the U.S. should
not publicly condemn Israel Tor
its invasion of the Iebanon.

Washington officials— and the
Jewish lobby— believe that Mr
Shultz will favour a tougher
U.S. line against the more pro-
vocative actions of Mr Mena-
chem Begin, the Israeli Prime
Minister, even ■ though under-
lying U.S. support for Israel is
unlikely to waver.

Mr WiiHam Clark. Mr Rea-
gan’s increasingly influential
national security adviser, never-
theless said at the weekend that
he was “ unaware ” of any fears
in Israel that the departure of
the pro-Israeli Mr Haig meant
a change to a firmer American
attitude.

In European affairs, officials
said they expected Mr Shultz to
follow closely in Mr Haig’s foot-
steps.

After his Camp David talks,
Mr Shultz said: “I’m confident
on the basis of aB these con-
tacts and experiences, let alone
the discussion we had today,
that I can work sympatico with
his Administration.’’ He ad-
mitted that he had been “truly
surprised " by Mr Haig’s resig-
nation.

While some Washington
analysts ‘ believe that Mr
Shultz’s appointment will sig-
nal a shift to the right in
foreign policy, the new Secre-
tary of State has far from impec-

cable credentials in the eyes of
Mr Reagan's more conservative
backers. He is on record, for
example, as opposing the use of
trade sanctions against the
Soviet Union.

David Tonge reports: British
ministers, while regretting the
resignation of Mr Haig were
relieved . yesterday over the
choice of his successor. But they
are also concerned over how Mr
Shultz will handle the problems
now blowing up between the
U.S. and Europe.

Britain and its EEC partners
are preparing to confront Wash-
the EEC and- over President
inglon over steel imports from
Reagan's decision to prevent
U.S. technology being use in
West Europe's work on the
Sib eria-Eu rope gas pipeline.

On the Middle East, there are
hopes that Mr Shultz will be
mare sympathetic to British and
European views. But Mr Haig’s
departure means the loss of the
one man in Washington who,
even if he did not give un-
alloyed support, could be
counted on to put the N«o
alliance first in his vision of the
world.

Mr Haig won strong support
in London for his handling of
the Falklands crisis, particu-
larly when he made sure that
the Reagan Administration came
down .firmly on Britain’s side.
Profile of George Shultz, Page
2; Editorial comment Page
12; Feature. Page 13

Continued from Page 1

BR services

cumulative rather than imme-
diate. .

Last winter’s Aslef action
cost British Steel Corpora-
tion (BSC), which is heavily
dependent upon raj] trans-
portation. about £12m. As
well as conveying steel pro-
ducts. rail is used to take
supplies of coking coal iron
ore and other necessities to
steel works.

The corporation is making
efforts to ration stocks within
plants to keep uninterrupted
production going as long as
possible-

In the important steel town
of Scunthorpe, the local NUR
branch has come out against
the strike because of fears
that the BSC might transfer
traffic from rail ot road. Bnt
the Iron and Steel Trades
Confederation in Scunthorpe
is backing the NUR’s national
strike action.

The National Coal Board.

(NCB). which uses rail to
tarusport a large proportion
of its output, lost production
of about 2m tonnes during the
Aslef dispute. But the Central
Elecricity Generating Board
increased output at its oil-fired,
power stations, and It will he
doing so again this time. The
generating board holds coal
-stocks of about 20m tonnes.

The position is complicated
by threats that the National
Union of Mine workers will
support the railwaymen and
prevent the movement of coaL
The NCB warned yesterday
that, if this happens, “ the pits
will dose themselves within
a matter of days."

Most London employees
reported for work throughout
the Aslef dispute. But tbat
involved stoppages on only
two working days per week—
and this time London must
contend with an underground
strike as well.

Continued from Page 1

Beirut

government to feel free to ex-
tend its original military aim
so as to encompass a drive to
create a new political order in
Lebanon.

Israel is also concerned about
the close business links with
Saudi Arabia of Mr George
Shultz, ihe Secretary-designal e.
He is expected to line up with
Jlr Caspar 'Weinberger, the
Defence Secretary, who is
regarded as Israel’s fiercest
critic within the Reagan
Administration.

In Kuwait, Mr Abdul Aziz
Hussein, the Minister of State
for Cahinet Affairs, said that
Arab Foreign Ministers, meet-
ing in Tunis, would consider use
or oil sanctions to farce an
Israeli withdrawal from
Lebanon, The meeting ended
inconclusively last night.

King Faud of Saudi Arabia
said in a messr^e tn President
Reagan yesterday that Israel’s
action “ will lead lo serious
consequences for peace in the
region and the whole world.”

Militant vows to resist expulsion

BY ELINOR GOODMAN AND PHILIP BASSETT

MEMBERS of the Militant
Tendency organisation yester-
day signalled their determina-
tion to do everything possible to
resist exclusion from the
Labour Party. Meanwhile
Labour moderates rallied
behind Mr Michael Foot, the
party leader, and— in what
could be a significant develop-
ment— some of Mr Tony Bean's
former supporters on the Left
appealed for party unity.

At a meeting of abont 200
young Militant supporters in
London, Mr Pat Wall, the Mili-
tant member selected on Friday
as the official Labour Party can-
didate for Bradford North, gave
the first indication of the kind-
of disruptice tactics, amounting
to a sit-in. Militant will use to
stay in the Labour Party.

Mr Wall, one of eight Mili-
tants selected as candidates who
will have to be displaced If Mili-
tant is still found to be in
breach of the party’s. constitu-
tion in three months time, said

there was no way he would
leave the Labour Party'. ’

He made it clear that the
leadership would have to wind
up his constituency before they
dropped him as a candidate.

" How are they going to keep
us out?” be said. “Do they want
to turn the party upside-down?”
He would, he said, keep on going
to party meetings, and if he was
excluded, he would just wait
outside.

Militant would go on selling
its newspaper to Labour mem-
bers. and would keep up their
contacts with the Labour Party,
both socially and at work. There .
was no way Militants could be
divorced from the Labour Party
"either socially or politically.”
he said.

At their conference. Militant
claimed to already have the
support of “ hundreds ” <rf con-
stituencies.

But there were signs yester-
day that some Leftwing activists
would prefer to avoid another

bloody war in the party. The
Labour Co-ordinating Commit-
tee, a group of Left-wingers
once associated with Mr Benn.
published an open letter yester-
day calling for a “new deal.”

The letter warned that expul-
sions could only further weaken
the party’s electoral perform-
ance. and attacked “ witch-
hunts.” But it also called for
an end to “hit-lists and slates”
— devices more usually asso-
ciated with the Left than the
Right.

A can for a united campaign
against the Government came
yesterday from Mr Roy Hatters-
ley, the shadow Home Secretary.
The NEC’s derision to set up a
register of Labour groups was
not a “purge or a witch-hunt ’’
Militant, he said, spoke for “ a
tradition wholly alien to our
principles. ”

Meanwhile. Labour Party
union moderate Mr Sid
Weighell. general secretary of
the National Union of Railway-

men. ’ yesterday . launched a
further stinging attack on the
Left in the party. Mr Weigbell
said that dealing with Militant
would be aLabours last elec-
toral chance.

Mr WeighelFs attack follows
a public row with his Left-led
executive committee, which was
critical of a previous attack by
him on Left-wingers in the
party-

In his political report to the
NUR annual conference which
opens in Plymouth today, Mr
WcisbeU says: “A grouping like
the Militant Tendency and
other rag-tag and bobtail
Trotskyite groups which have
gained influence in recent years
are only interested in the
Labour Party as a means to an
end,”

The union is likely to debate
the activities of Militant and
other Left-wing groups in its.
own ranks this.- week when Mr
Weigh ell presents delegates a
dossier on Militant's activities

opens car
pay talks
with 5%

By Our Industrial Staff

LUCAS . INDUSTRIES has
opened the motor industry pay
negotiations with an offer of
about 5 per cent for manual
workers, ' •

. The car parts supplier, with
a wage review date -of July for
most workers,, has given - a
strong lead to tihe industry in
the past two years. Take-it-or-
leave-it offers of 10 and 5 per
cent were pushed through in
spite of pretests.

This time, Lucas has said it
is prepared to negotiate. But
union leaders say the gesture
merely acknowi edges growing
worker unrest, and is unlikely
to involve much flexibility.

Lucas, lake other Midlands-,
basted parts suppliers, has
stressed reducing unit labour
costs in response to the decline
of the UK motor assembly,
industry and the pressure of
international competition.

The' West Midlands is tradi-
tionally the pace-setter for
wage demands. But Mr Chris
Walliker, .chairman of the
regional council of the Con-
federation of British Industry,
said last night that settlements
were currently running at 5 to
6 per cent below the national
average.

Many companies had either re-
fused or postponed ‘ wage
increases. Midlands businessmen
expected a rising trend of un-
employment and no improve-
ment in demand, despite
optimistic national forecasts.

Mr Walliker said that against
such a background the level of
pay Settlements was likely to go
down.

Mr Walliker. however, issued
a warning that the forthcoming
pay round would be “crucial”
and that pressures from the
shop floor were mounting.

■ Employers were “ uneasy.” fie
said. Companies for two succes-
sive years had encouraged the
unions to exercise restraint. But
there was still no sign of the
promised improved demand
necessary to justify such
sacrifices.

Union leaders in the West
Midlands report frustration at
many companies. Including
Lucas, at the erosion' of living
standards.

Workers at Lucas’s 10 West
Midlands factories will be voting
over the next few days on the
management offer of an increase
in basic rates ranging from
around £3.40 to £5.90 a week
according to skill.

A key factor in .the voting
will be additional payments of
£1.80 to £2.00 a week, promised
to the many shift workers who
did not benefit from the intro-
duction last November of the
39-hour week.

Weather

UK TODAY

SHOWERS and bright intervals.
Cool. Goudy in Scotland but
brightening.

London, S.E. and Midlands,
Cent England

Showers, bright intervals.
Max. 19C (66F).

Wales, Chan. Isles, S.W. and
N.E, England

Showers, some prolonged.
Max. 18C (MF).

N. Ireland, N. W. England, Isle
of Man, S.W. Scotland
Rain, bright intervals. Max.
16C (61F).

S. Scotland, Cent. Highlands,
N. Scotland

Cloudy, outbreaks of rain.
Max. 13C (55F).

Onllook

Changeable but becoming
Vranner.

WORLDWIDE

Y‘day

Y*dey

midday

•c

•F

•C

■F

Ajaccio F

C Ang.t C

Algors S

Luxuibg.

.59

Am trim. F

Luxor

— "

—

Athens S

Madrid

Bahrein S

38 100

Majorca

Bnrclne. S

Malaga

Beirut

Malta

Bel leer C

M’chsjr.

Belgrd. S

Melbne.

.52

Berlin C

Mx. C t

—

Biarritz F

Miarnit

Bmghm. C

Milan

BiecCpi. C

Montri.t

Bardx. F

■19

MOSCOW

Boulgn. C

Munich

Bristol F

Nairobi

Brussels R

Nap lot

Budpsl. C

Nassau

_ •

Cairo

- —

Nwestf.

.is

69 .

Cardiff F

61 1

N Torist

Cas'b’u S

72!

Nice

•81

Capo T. S

63|

Nicosia

—

Chicg.t C

66!

Dpono

Cologne C

Oslo

Conhgn. F

Paris

ffi

61 i

Corfu S

Psrih

—

;

Dftnvort C

Prsque

Dublin C

RVK|vk.

Dhnmk. S

Rhodes

35'.

Ednbph. C

Bio j’oy

—

Faro S

Rome

81 |

Fkjranee f

Salrbnj.

Fronkft. B

S'clxcof .

—

_ '

Funchal F

S. Mriir.

—

Geneva C

Singapr.

—

Gibreltr. S

S'tisqof

—

— |

Gl'eq'w R

Stckhiru C

81 !

G’msey F

IS .

Strnbg.

18 .

B1 |

Helsinki F

-68

Sydney

S3 |

H. Kong S

Tansmr

tnnsbrk. ft

15 ■

Taf Aviy F

Invmte. R

Tenerife

f»

l.o. Man C

Tokyo

Istanbul S

TVntot

Jersey F

Ttinis

Jo’burg F

Valencia

L. Pirns, f

Venice

Usboo S

Vienne

Locarno S

Warsaw

London. C

Zurich

C— Cloudy: F— Fair. Poo. H— Hell.

P — Rain, s — Sunny. Si — Sleet.
St*— S now. T — Thunder,
t Noen GMT wpiwinw. '

On Friday tire CfaSefrSecre-
tsry to the Treasury.was assur-
ing tite businessmen .of New-
castle upon Tyne that “gloom
about our ecpfiomac prospects;
Is misplaced". But the stiffened'
morale of those investors wont-
ing for a demand boost to , put
some pep in f&eirfavourite
recovery stocks ‘wail fee wilting
again this morning after the
pubtiratioh 'of the latest CBI
trend enquiry and tire London
Business School;. Economic Out-
look. Far from. ' recovering,
demand in- some hand-pressed,
sectors seem$ to . fee. slipping
back again. The CBI finds that
in June “demand has noticeably
weakened for firms in' the metal
manufacture broad' industry’s
group.” and output expectations
ii* tins sector have tadled off*
smarply.

teooK ■

lAOOf-

1£00j

600

HongKongj

Hang Sen# Index

IVf 6 I t > I M M 1 ft ■ tl

1980

1961

«2

With destocking coming to an
end. and signs of cautious re-
stocking in some parts of the
economy, the failure of
domestic demand to ..'respond
represents something' of a
puzzle. An explanation is pro-
vided by the LBS. itiiidh points
out that, under the cover of the
statistics blackout during last
year’s civil servants ' dispute,
there was a sharp increase in
import penetration. So imports,
particularly manufacturers,
have satisfied a high proportion
of the increase in demand. In
suite of the recent strength of
Ihe U.S. dollar, .storting’s
recovery since 1977 stilL leaves
UK industry relatively, uncom-
petitive. Recession efoewherein
the world, in general emerging
later than in the UK, has put
pressure on exports and intensi-
fied compet i tion In the borne
market. • ' V V

dneers, most ' recently Redlahd.
Nevertheless; the LBS forecast
for GDP seems, if anything, to
be- edging lower, with a. 1 per
cent gain- in-output expected in.
1982..; . - ‘ '

A reappraisal -of growth pros-
pects already seems to have
taken place— yet again— in the
stock market over -the lart Tort-
night or so: Mainstream recovery
stocks in the engineering and
allied sectors, which were
attracting attention early in the
year, are now bade at or near
their lows for 1982. • GKN, at
145p. is 22 per cent off this
v ear’s peak; Lucas is 27 per cent
down. The metals and metal
forming index has .once again
taken un Its accustomed place as
one of the main laggards, with a
decline of nearly II per cent
since the beginning of 'the year.

While the CBI enquiry re-
emphasises the confident mood
of the [chemical industry, any
recovery in the economy seen:
so far seems to have centred on
the building sector. Blue Circle’s
report in April of bett er demand
has since been backed up by
other building material pro-

. This forecast is admitted- to'
be particularly sensitive to the.
behaviour of Interest rates. The
LBS still expects UK bank base'
rates to have fallen to -Hi per
cent by -the -end of the year.:
However, Behind this assnmp-.-
tion lies an optimistic .View of
the future course of US interest'
rates which looks rather fragile
after <he events of the last week
or-so, ; v ;

In spite bf- the disap pointing
demand picture,' the ’LBS
remains confident about a rapid
increase in profits, -pointizig to
a “dramatic”' increase in pro-
ductivity' as the main factor.
The . cut m the National Insur-
ance Surcharge is also' cited,.'
while a lower sterling exchange'
rate in recent months ; has
allowed some improvement in .
margins. - However, the - LBS
may prove somewhat . bver-
optimistic on this front While
good profits growth isr 1 still
expected, . stockbrokers' ^fore-
casts are currently bring edged
lower. In- its latest market
rewew, for example^ Phillips £
Drew says -that its earlin- -pro-
jection of a 15 to 20 per cent
rise in industrial profits in 1982
is now looking a little; on the;
high sides. •*” '

'index - at the,

Ciribankcoit ate gratae
.'.percents®® point- 1 : 3Ks. mni

- was followed by.;«4
from the

•carted to 15* per’ tevej

' witieh so far- ins;

;‘&fced- even

been- forced back up per
-cent. - • Bat- the: HanfirSeng^has.
slid by - nearly a -testifr- ‘to : 'l28Q.

raise

autumn,- .and makes .tiMowance
fof only a modest -increase in
'overall . profits^- tots :• ybax and
even asUsbtdecl^

■the- property slowdown jmaSes

itself fdBt ..
earnings:, at . an . i
premium, ; recent ’• moolis ; have
seen ©^^performance ifrom ' the
' trading. bouses, ' utilities, and

- fmancrate; The worry ts'fisat &
the; interest- screw ■ 7. tightens,-
gome of -the secondary jkvpbriy
companies cotfld go raider 'this
autumn,' dealing a blow to mar-
ket sentiment -and leaving some
unpalatable bad drills- in the
betnk&tg sector. "

If"

^.r

Hong Kong

At current Ievris. tbe Hong
Kong stock market offers a pro-
. spective ylrid of perhaps: 7 per,
. cent and a p/e of 9— wMch. to.
judge by jMst history looks' an
uncommon bargain. But the pos-
sible rep emissions .of hardening
^U-S. interest rates- are at teast
as serious for Hong Kong as any
market round the world. Hong.
Kong's current sensitivity to
US. rates is underlined by the

Discounted bonds :

r - Last week's “ clarification ”
frpm tiie Inland Revenue un the.
likely taX position of; deejp
discounted'' stock -manages :to
introduce a. fresh- element of
uncertainty. Capital ; appreria-
tidn in low and zero; coupon
stock is to fee taxed as .interest:
clear enough, though hardly an
enticing ' prospect for many
lenders. More 'pmizioariy. the
Revenue states that the Govern-
ment is . examining the prospect
of.. taxing this “toterert” on
what it: calls an accruals basis.
This apparently means "that tax
wlH be charged— and allowed
for— ^annually on both sides of
the . transaction even: though no
money .'.’changes hands. The
jprospect of §treh a major innova-
tion' entering the. investment
scene nray doi more than .any-
thing -else 1 to dampen entira-
s iattm for- e3qperimentotion : |n
n'CTV.foons of bobdsii ’ : : ---r .'

. Meanwhile, even thougfr - toe
practical difference between a
Ibw coupon feond.and an indexed
one ties mainiy-f ct; tjhe^act' flhat
m -the Case of toe .former ' the
-idre df tote capita* uplift fc set
in' .. advance, .' -toe.; dai : regime
announced on^Friday draws a
fumiaiiient^ the

-upRft^m-an .indexed bead is
indeed to be treated as capital
appreoktion.; For-the coi-porate
borrq wer. of. cours e,,' to at means
no . Interest : payments wffl be
avajlafete to set off against
taxable inconie. "

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